In the early morning trade, October gold is currently down $6 and trading at $1264.5 an ounce. After this morning’s better than expected monthly non-farm payroll number, October gold has pulled back $8 off its overnight high. The bull camp took back control after yesterday’s morning sell off, but it has been making lower highs this week which cannot be ignored for a possible reversal. Furthermore, after today’s job number, the US Dollar has caught a bid and that also is putting pressure on gold at these price levels.
If we take a look at the daily gold chart, you’ll clearly see that October gold is in a near-term up trending market. Furthermore, there are some bullish moving average technical patterns on the daily gold chart. The 20-day moving average crossed over the 200-day moving average this week and is slopping up and about to cross above the 50-day moving average. If it does, then look for more buying momentum to come into play and push October gold up to around $1,300.0 an ounce. Below is a daily October gold chart with highlighted technical levels.
Oct ’17 Gold Daily Chart