FX.co ★ Technical Analysis of Gold for December 04, 2014

The yellow metal gained momentum after the soft ADP jobs data. Today, the focus has shifted to the US unemployment data and ECB press conference. At yesterday's session, we recommended buying at $1,200.50 with the target at $1,207.00. The metal made high at $1,214.70. The support levels shifted to $1,202.00 and $1,199.00. Today, a positive reading from US will lead to selling pressure again. The weekly resistance exists at $1,236.00, above this $1,255.00 will come to existence. The monthly resistance level exists at $1,275.00. The metal has been facing strong resistance at the descending trend line in the daily chart. A daily close above this leads to a relief rally towards $1,230.00. Attention is fully focused on today's ECB meeting. Any indication of a policy change will boost the US dollar strength. Gold is inverse to the US dollar. The hourly support levels exists at $1,206.00 and $1,203.00. We recommend safe selling below $1,199.00 with the targets at $1,194.00, $1,191.00, and $1,190.00. In case if the prices fall below $1,188.00, we can expect a steep fall towards $1,183.00,$1,180.00, and $1,1780.00 levels.