Gold pushes higher on US data release

<p>Gold (daily chart) pushed higher on the delayed release of the US non-farm payrolls report released on Tuesday morning. This advance furthers the climb from […]</p>

Gold (daily chart) pushed higher on the delayed release of the US non-farm payrolls report released on Tuesday morning. This advance furthers the climb from the 1250-1265 support area last week that broke out above a key downtrend resistance line extending from the late August 1433 high. This price action occurs within the context of a one-year plunging downtrend that has been in place since the October 2012 highs near 1800. A large upside correction of this downtrend occurred in July and August from the long-term low at 1180, but failed in late August at the noted 1433 high and began to fall once again.

Currently, having broken out above the downtrend resistance line and reached up to the 50-day moving average, gold could be poised to stage another recovery attempt. Further upside momentum that moves price above the 50-day moving average could target a key upside resistance objective at 1425. Downside support continues to reside around the 1265 level.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.