Gold saw a sharp rally in North American trading as the increase in the weekly claimant count in the US was flagged by the market as a potential reason for the Fed to consider cutting rates. This of course would have inflationary effects and would then be potential reason for central banks to increase gold purchases. Otherwise we have little news that is inherent to Gold Supply and Demand.
Resistance
- 2397.90 – Previous Intraday Consolidation Resistance
- 2372.99 – Previous Intraday Consolidation Lows
- 2353.93 – Range Play Highs
Support
- 2332.05 – Previous Daily Consolidation Resistances
- 2322.26 – Previous Intraday Consolidation Resistance
- 2303.67 – Previous Intraday Consolidation Floor
XAUUSD has a convincing daily level push through the prior consolidation high for the week with a solid bullish body. The move has pushed us well past the 20D Moving Average and taken daily oscillators into overbought areas. At the same time immediate resistance for us is a two week high and previous consolidation floor making any further upside difficult with out a catalyst. For now we prefer remaining sidelined though long wicks in hourly charts will have us consider taking the sell side with a stop and reverse should prices push past the wick highs.
