Spot gold displays another downturn and plummets 89 dollars

January 11, 2021 - 2 weeks ago
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The precious yellow metal bulls were seen taking the exit door on Friday after the bears crushed the trendline at $1,890-96 and exposed the region of $1,840-60, (which was reached), after prices plummeted 89 dollars from $1,917 to an intraday low of $1,828, which was followed by a modest bounce.

The Non-Farm Payrolls (NFP) in the U.S. fell by -140,000 in December, the data published by the U.S. Bureau of Labor Statistics showed on Friday.

This reading followed November’s increase of 336,000 (revised from 245,000) and missed the market expectation of +71,000 by a wide margin.

Further details of the publication revealed that the Unemployment Rate stayed unchanged at 6.7% and the Average Hourly Earnings rose by 0.8% on a monthly basis, compared to the 0.2% forecast.

Political turmoil should continue this week, and it remains to be seen when or if the markets will be affected by it as the House of Representatives plans to vote this week on impeaching President Donald Trump related to his conduct surrounding the January 6 storming of Capitol Hill and his efforts to overturn the Georgia election.

A Senate trial would likely take place after President Trump’s term ends on January 20.

Viewing the technical standpoint, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator currently in oversold territory, while the Moving Average Convergence Divergence (MACD), supports a negative signal.

The Average Directional Movement Index (ADX) trend indicator is ranging.

With the downside target reached ($1,840) now gives a neutral outlook.

However, sub $1,820 could ignite a move to the region of $1,765-80.

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