Gold eased as the USD strengthened after the employment figures last Friday. The market opened at 1937. The price was traded in a tight range between 1933-37, early in the Asian and European sessions. The drop began as the market approached the US session, and the price consolidated further after the US released its employment figures. The day ended at 1924, down by USD13.

The highs in the 1-hour chart are moving lower in the past two weeks, from 1965 the week before to last week’s 1950, forming a downward resistance line(2). The price has yet to escape the 1920-50 range-bound, waiting for the pattern to break.

The structure hasn’t changed much in the daily chart; traders can continue to take advantage of the tight range 1920-42 in the daily chart until the pattern breaks.

S-T Resistances:

1950

1940-41

1930

Market price: 1928

S-T Supports:

1920-18

1915

1910-08

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.