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Gold Trimming Losses as Investors Turn Attention After Locking Gains on Friday

XAUUSD : Weekly Chart

Gold declined on Friday against its US counterpart after the upbeat Non-farm payroll data as the expectations among investors again strengthened that Fed might increase interest rates sooner than earlier scheduled. On the weekly chart, the commodity declined breaking below the key support at 1206.86. However it found support at 1187.96 which earlier also prevented the commodity to decline further. The pattern of the moving averages on the chart now is such that the 100 day SMA is above the 50 day SMA and 200 day SMA is above the 100 day SMA signaling a downtrend continuation. So we might again see gold declining below the key support at 1187.96. If it continues to decline the next nearest support would be at 1154.68.

XAUUSD : 4 Hour Chart

On the 4hour chart, the commodity rose from the support at 1187.96 and seems like currently testing the resistance at 1195.39. If it rises above this resistance the next nearest resistance would be at 1206.86. On the stochastic oscillator the red signal line is below the average trend line signaling that the pair should continue to break above the resistance at 1196.10 towards the next resistance level until the average trend line (Blue Solid Line) breaks below the red signal line.