The downward trend is still dominating. Keep an eye out this week for the US CPI and the Fed. Meeting.
Gold took advantage of better-than-expected employment data in the US market last Friday, finally escaping the 2020-40(1) zone. The price hit a daily low of 1994 and closed at 2004 before the weekend, experiencing a $24 drop throughout the day.
1-hour chart - After experiencing extreme volatility last Monday, gold prices have been claimed throughout last week. Following the 2020(1) support level breach, prices have stepped to the next range of 2000-20(2). The support level is now at 2000, with a short-term rebound target around 2018-20. Until a bottoming signal emerges, the initial downside target is around 1980, with the key focus on Wed's Federal meeting.
Daily chart - After breaking out of the ascending channel (4) last Friday, we can expect a round of selling in S-T. The resistance is currently at 20 MA(5), while the downside target is around 1978(7) for a 50% retracement. Last Monday's topping signal(6) continues to dominate the daily chart trend and needs to be digested further in the market. The basic structure needs to be adjusted toward near 1910-40.
S-T Resistances: 2015 2010 2007
Market price: 2002
S-T Supports: 2000 1994-5 1990
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