Jobless claims rose more than expected. The indicator climbed last week to one-month high. Yellen said the Fed would watch carefully the signs of further growth to remain. These factors made the US dollar weaker and gold jumped to the crucial resistance level at $1,336.0. In our yesterday's report we stated, until gold crosses the level of $1,336.0, we can't see up move. Yesterday, gold exactly tested $1,335.90.
During the Asia's trading session, gold is trading at the level of $1,331.0.
Downside-
· We could expect the targets in the near term at $1,318, $1,307, $1,300$, and $1,285.
· Unable to sustain above 50SMA at the level of $1,336.0.
· $1,321-$1,318.0 is the major support zone.
· A day close below the level of $1,318.0 will push gold towards $1,307.0, $1,300.0, and $1,286.0.
· Trend changes a day close below $1,245.0.
· RSI favors the downside in the daily chart.
· Broken the rising, supporting trend line.
Upside-
· The price is trading above 200DEMA in the daily and hourly charts.
· $1,336.0 and $1,346.0 is the strong resistance zones
· RSI favours upside in the hourly chart (pullback)
· A day close above the level of $1,336.0 will move gold towards $1,345.0 and $1,361.0
Recommendations-
· Intraday- The area above $1,333.0 only looks safe for bulls
· More strength only if the price breaks above $1,336.0 towards $1,345.0
· Close above $1,336.0 only hope for next up move. Until sell on rallies
· On positional basis, until the price trades above $1,346.0, we can't see higher levels
$1,245 < $1,286 < $1,300 < $1,307 < $1,320-$1,318 > $1,336 > $1,346 > $1,361
