FX.co ★ Technical Analysis of Gold for December 05, 2014

GOLD

The yellow metal prices are consolidating in the descending trend line on the daily chart. Today, the pair opened on a bearish note. The nearest support level exists at $1,200.00. Today, the focus has shifted to US jobs data and the unemployment rate. Positive readings lead to further bearishness of the metal prices. The weekly resistance exists at $1,236.00. The monthly resistance level exists at $1,275.00. The metal has been facing strong resistance in the descending trend line on the daily chart. A daily close above this leads to a relief rally towards $1,230.00. Ahead of the major economic events, the metal looks very weak. We have to monitor the key data. We recommend fresh buying only above $1,206.00. For bears, we recommend selling below $1,200.00 with the targets at $1,195.00 and $1,191.00. The prices have been consolidating for 5 days after a sharp rise. In case if the prices close above $1,212.00, we can expect $1,230.00 in the near term. But please note, the overall strategy remains selling on a rally.