Gold pulled back from the 2-weeks high last Friday. It had traded between 1746-64 throughout the Asian & European session. Once the US employment figure was released, the gold price jumped all the way to the 1780 level. But it had retraced quickly before the day’s end, the week ended near 1756, up slightly by USD 2.

The buying momentum from last Friday’s US employment has all been absorption by the market, while the gold is now settling once again within the 1746-64(2) trading zone. Trendline (2) has been breached early in the Asian session today, the price is getting weak and it may touch again the bottom of the range in the next 24 hours.

The buying support last week below 1760 has been canceled out by the long upper wick(3) on the daily chart . If the price can break the support at 1745 and carry the selling momentum this week, it should be able to touch 1730 or lower.

The L-T downtrend is accelerating on the daily chart , from a gentle trendline (4) to (4.1), and the newly formed (4.2). The key support is at 1725. If the price breaks out from it, the target can be set at 1680 or lower.

S-T Resistances:

1770

1764

1760

Market price: 1757

S-T Supports:

1755

1750-21

1744-45

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