Market Analysis: Gold bulls take over - First target of around 1,265 USD activated
With the Non-Farm Payrolls (NFPs) coming in at 155,000, and the Average Hourly Earning (MoM) figure coming in at a disappointing 0.2%, while 0.3% was expected last Friday, 10-year US Treasury yields couldn't make it back towards 3% into the weekly close. That being said, Gold saw a push above 1,244 USD/ounce to new quarterly highs, where it closed the week. With uncertainty surrounding the Commons vote for Brexit on Tuesday, and while the economic docket is all in all thin into the start of the trading week, momentum should be on the Gold bulls' side.
Source: Economic Events 11 December 2018 - Admiral Markets' Forex Calendar
That being said, Gold has a serious chance to push higher, with a first target to be found around 1,265 USD/ounce. Here, we find not only the July and Q3/2018 highs, but also the 50% Fibonacci retracement level of the current yearly highs and yearly lows. The short-term motto is "Buy the dip", a pullback towards 1,244 USD, and even deeper towards 1,230 USD is interesting for long engagement, at least as long as Gold trades above 1,211 USD.
Source: Admiral Markets MT5 with MT5SE Add-on Gold Daily chart (between 26 October 2017 to 07 December 2018). Accessed: 07 December 2018 at 11:00 PM GMT - Please Note: Forecasts such as this are not a reliable indicator of future results, or future performance.
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