Gold is nearing key support
In line with our expectations, gold declined sharply during yesterday’s trading, reaching as low as $1860 earlier today during the Asian session. I hope none of you is stuck with any long positions over $1900 as we warned for the past few days that buying Gold above $1900 would be a mistake. In the meantime, the current downside move is still considered as a short-term retracement, which may continue towards $1850 or $1840. The technical indicators are now far away from being overbought and I would like to see some stabilization in the coming days over $1840 before thinking about new long positions, while the US Jobs Report today might be the catalyst for further declines to test that support.
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 1793.82 | 1837.92 | 1854.34 | 1882.02 | 1898.44 | 1926.12 | 1970.22 |
4H Chart
Daily Chart
