The metal lacks momentum at higher levels between $1,100.00 and $1,105.00, on a weekly basis it has been making lower closing price.
Nonfarm payroll report showed 215,000 new jobs in July, and the unemployment rate was unchanged at 5.3 percent.
China encourages private gold reserves. Wall Street gold expert Perth Mint Baron Suxie Ke said, China has been encouraging private gold reserves, 55% of the gold flowing into the private pockets. The remaining 45 percent is in the hands of commercial banks and the Central Bank. China’s official gold reserves should be about 2,400 tons. If combined with reserves of commercial banks, it should be 4500 tons. (Business Insider)
The world’s largest gold ETF – SPDR Gold Trust holdings reduced 0.24 tons compared to the previous day with a decline of 0.04% to 667.69 tons.
Technical view: The metal has been making lower highs for seven weeks in a row and making lowest closing level also for seven weeks. Last 3 weeks, the metal was making taking support at $1,077.00 level and remained above $1,085.00 on a weekly closing basis.
The 20Dsma is set at $1,103.50 and multi-resistance zone seems at $1,105.00. The yellow metal was trading at $1,092.00 during today’s Asian session compared to $1,093.70 at Friday’s close.
Forecast: The metal has been consolidating between $1,077.00 and $1,105.00 for 11 straight sessions with developing positive divergence. If the metal manages to close above $1,106.00, bulls will aim at $1,110.00 initially, later at $1,115.00 and $1,118.00.
Intraday: Support is seen at $1,089.00 and $1,087.00. Resistance seems at $1,095.00, $1,097.00 and $1,100.00. Today’s trend favours buying with sl $1,087.00. The momentum is likely to be strengthened above $1,098.00 with targets at $1,100.00 and $1,102.00.
The material has been provided by InstaForex Company – www.instaforex.com