The Gold price dropped sharply after hitting the critical resistance at $1518.23. The sharp downfall in the Gold Index is most likely the result of positive NFP data. Though 128K more jobs have been added to the U.S economy, FED is still planning to cut the interest rate on the basis of 25 points soon. Such a dovish stance from the FED officials provided immediate support to the Gold price at $1483.40 which is also the low of 5th November. If this level manages to limit the downfall in the Gold index, the optimistic gold bulls might push the price higher towards the resistance at $1518.23.
A daily closing of the price above the high of 1st November at $1518.23 might bump up the gold price in the global market. Eventually, the gold index might lead towards the next major resistance level at $1543.29. Breach of that level might refuel the gold bulls and target the major resistance at $1565.91, high of October 4, 2019. On the downside, the gold index needs to clear the immediate support at $1483.40 to impose a fresh bearish threat. Slip in the gold price from that level, might lead this pair towards the low of 1st October 2019. Considering all the technical parameters, the overall bias for the gold index is slightly bullish.Download our latest quarterly market outlookfor our longer-term trade ideas.
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