Sasha Singh
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Gold Breaks Below 1200

XAUUSD : 4 Hour Chart

Gold finally broke down below 1200 today after the series of upbeat job data and trade balance data from US. Prior to the release of data, commodity was testing the support at 1206.86 and was following a descending triangle trend which it confirmed by breaking below the support. 

XAUUSD : Weekly Chart

As we can see on the weekly chart,the next key support would be either at 1187.96 or 1154.68.

The official data showed that the U.S. non-farm payrolls rose to a seasonally adjusted 248K from 180K in the preceding month beating the economist’s expectation for an increase to 215K. 

A separate report showed that the U.S. unemployment rate ticked down to 5.9% last month from the reading of 6.1% in August. Economists were expecting the rate to remain unchanged. 

Another report showed that the trade deficit narrowed to $40.10 billion in August from the reading of $40.30 billion in July which economists were expecting to widen to $40.90 billion in August.

I am expecting that US dollar will continue as the expectations among investors that Fed will start increasing interest rate earlier than expected have become stronger.