Friday's weak nonfarm payrolls report saw gold futures rally over 2.20% or about $25.26 points on Friday afternoon following the announcement. Gold futures which declined by over -3.50% during the week managed to recover most of the losses, closing the week at a -0.72% loss. The emerging technical pattern in gold futures indicates a possible move to the upside upon break above key resistance in the ascending triangle pattern. A close above the resistance sitting at 1168 and 1170 is required in order for gold to rally towards the psychological price level of 1200 and eventually to 1221. The longer term descending wedge pattern indicates an eventual upside to 1300 should prices take support above the 1221 resistance for support. Gold posted a new 52-week low of 1077.18 back in July and has since then remained choppy for the most part.
Dollar Slips on Weak Payrolls
Daily Analysis - 05/10/2015