Gold is still influenced by expectations the US Federal Reserve monetary policy. Although it is not the only factor. As you know, the precious metal is denominated in dollars, so any statements that could provoke a strengthening of the US dollar could have a gold pressure. Today’s data on the number of initial applications for unemployment insurance were slightly better than expected. Coupled with good employment component of ISM index suggests that Friday’s NFP report once again confirms the stability of the labor market. Against this background, expectations of a rate hike in September, the Fed can only intensify.
In the area of 1098.02 level gold formed a resistance. In fact, this is the upper limit of the range, steady from late July. For his breakthrough would require additional catalyst, which currently do not have. Therefore, we can assume that in the area of the level is set quite a large number of sell orders that could lead to a release and a drop in the level of 1082.37 area.
Warning: Profitability in the past does not mean profitability in the future. Any projections are for informational purposes and does not guarantee a result.