Gold crushed by dollar & good US data


Comex gold crushed by good unemployment & manufacturing data from US. Good US data resulted in higher dollar index which added more pressure in gold. Comex gold crashed from 1544$ to 1505$ within hours after data. Many analysts were expecting weak data from US as we have some recession rumor going on in market. But US did not disappoint and presented excellent jobs & manufacturing data. It seems president Trump’s policy of america first is working just fine.

Today we have major Non farm payroll & Unemployment rate from US. This data will verify the claims if we are going towards recession this Christmas or not. Fed chairman will also testify after jobs data today. So we it would be crucial situation in evening when Fed chairman address press after job numbers. We will see how fed is looking for next year and what is their plan for holiday session.

Trump keep criticizing fed chairman to not cut interest rates. We will see if chairman has something to say on this as well. US & China also intended to resume talk in October. This is also driving a little negative trend towards gold.

Currently gold trading at 1518$. Good support in this precious metal stands at 1505$. If trader breaks and sustain below 1505$. Then expect good pressure in comex xauusd till 1500$- 1491$.

Resistance in gold chart stands at 1523$. If trader breaks and sustain above 1523$. Then expect good rise in gold till 1530$- 1540$.

Conclusion: Currently gold trend is weak. But its resistance is not far away and we might hit resistance in couple of hours. So take trade very cautiously. Non farm data will be a trend decider for upcoming weeks. Keep an eye on data and trade with extremely tight stop loss near data.

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