On Monday (December 3), I noted that Gold’s “new “line in the sand” at $1230 was also tested, breached and eventually broken. R3 at $1235 is pushing the price into over bought territory and the more significant daily resistance area. The October high was $1243.50″. The follow through bid on gold has continued this week and in low volumes, ahead of the US jobs data later today, Gold remains bid. Yesterdays (December 6) spike higher stalled at $1244.31, above the October high at $1243.50. However, the key for Gold this week was the close on Tuesday (December 4), north of the $1235 level and the congestion zone that had not been breached significantly during the October move up.
Daily resistance now sits at $1242.50-1243.00 (R1 and the key 200-day moving average) a close above here will be required for a continued move higher. Weekly resistance sits at $1248.00. The 38.2 Fibonacci level at 1238.30 now becomes first support, with S1 and S2 at $1233.35 and 1229.00 respectively. In conclusion, $1230.00 remains the “line in the sand” and the breach and hold of $1235 is positive for future Gold price appreciation. The US jobs data at 13:30 GMT is the key risk event.
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Head Market Analyst
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