Gold is still within the range it has been accumulating in since mid-June. We’re approaching the NFP news release and this could be the catalyst that is needed for it to finally breakout. The market is eagerly awaiting the numbers as bulls want this to progress towards the 1900 levels and bears want this to resume the decline towards 1700.
This is what we’re looking at here at KOG on the hourly.
We have 2 scenarios that we expect to happen. In both these scenarios, if we do trade it we will trade with a very minimal lot size.
The price comes back down to find support at the 1776-4 level and NFP gives it the to push up towards the following targets:
If the price pushes up to 1810 levels as we initially expected last week then we will short the market there targeting the lower levels shown on the chart.
We range here until the release, the price pushes up towards the levels we’ve given above and then it is more likely to drop back down towards the lower levels.
We will remain on this unless it breaks the 1810 level and holds above it. At that point the structure would have changed and the market may resume to higher pricing.
Lets see what happens this afternoon during the US session.
Ass always, trade safe.