Gold Rises As Trendline Support Holds Off

FXOpen

Gold extended an upside movement on Friday, increasing the price of the yellow metal to more than $1335 an ounce as the trendline support holds off. The technical bias remains bullish because of a Higher High in the recent upside rally.

Technical Analysis

As of this writing, the precious metal is being traded near $1338 an ounce. A hurdle may be noted around $1345, the intraday high of yesterday ahead of $1358, the horizontal resistance area and then $1375, the swing high of the latest major upside rally as demonstrated in the following chart.

Gold Rises As Trendline Support Holds Off

On the downside, the yellow metal is likely to find a support near $1333, the trendline support ahead of $1310, the swing low of the recent downside move and then $1300, the psychological number. The technical bias will remain bullish as long as the $1250 support area is intact.

US Jobless Claims

The number of Americans who filed for unemployment benefits last week rose from a three-month low, consistent with the Federal Reserve’s view of a stronger job market. Jobless claims increased by 14,000 to 266,000 in the week ended July 23, a Labor Department report showed in Washington on Thursday. The median forecast in a Bloomberg survey called for 262,000 applications. The less-volatile four-week average dropped to remain at the second-lowest level since 1973.

Trade Idea

Considering the overall technical outlook, buying the precious metal around the current levels can be a good strategy in short to medium term. The stop loss may be placed at $1210 while take profit levels may be near $1275.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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