FX.co ★ Gold unable to cross resistance

GOLD

The economic data once again raises so many speculations around the gold and USD. The positive economic data resulted in tampering would come sooner than expected. Barclay's have forecasted a stronger than expected reading of 200 thousand increase in nonfarm payrolls. UBS has now cut its 2014 gold price forecast to $1,200.

China's demand will undoubtedly continue testing the supply chain of the physical gold market. In India the hike in import duty on gold has led the demand for recycling gold.

If healthy economic data on gold and USD vanishes, gold will go through some more painful trades, on the other flip, USD will fly high.

Yesterday, we gave short in gold with sl 1,251.5, it works well. Gold fell after ECB decided that the rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.25%, 0.75% and 0.00% respectively.

In Asian's trading session gold trading at $1,224.5. It is facing stiff resistance at $1,236.5, where the support becomes resistance. As a result, we see downward prices. Gold has taken support at $1,216.6 and unable to cross the resistance line.

Recommendation - Move your sl to $ 1,243 from $1,251.5 (short given yesterday @ 1,243, cost to cost) and hold your shorts for the targets 1,210; 1,200; 1,185; 1,165.

On the above side - buy above $1,251.5 sl 1,243 targets 1,263 1,275 1,290. (above 1,264 only next levels will come) risky traders hold longs with 1,235 sl.