Gold pulls back sharply

In recent hours, we could observe increased volatility in the gold market. Immediately after the publication of the labor market data, the price of this metal rose sharply (almost $ 20 per ounce), but now the entire upward movement has been erased. Investors have a clear problem with the interpretation of today's data. On the one hand, the headline number was negatively surprising, on the other, the unemployment rate was better than expected.

Looking at the H4 interval, price failed to stay above the key resistance at $ 1766, which can be characterized as a false breakout. So it seems that the baseline scenario remains the consolidation between the resistance at $ 1766 and the support at $ 1750. Only a decisive breakout of one of these levels could lead to larger price movement.

GOLD interval H4. Source: xStation5