Gold Trades Sideways as Investors Await Jobs Data 3/11/2023

Gold prices experienced narrow-range sideways movement yesterday, maintaining the existing technical outlook. The price of gold remains confined above 1977 from the bottom and below 1993 from the top.

Upon examining the 240-minute timeframe chart, it is evident that the price has remained stable below the 1992 resistance level. Additionally, the Stochastic indicator shows clear negative signals, indicating the possibility of resuming the decline.

While the bias leans towards negativity, a significant development would be the breach of the strong support represented by the 38.20% Fibonacci retracement level at 1977. Such a breakthrough would pave the way for initial targets at 1972 and 1967, with the potential for further decline if the price dips below 1967, strengthening the downward trend and opening the path towards 1958.

Conversely, if the price consolidates above $1977 and confirms a breakthrough at 1994, it would serve as a motivating factor for gold to resume its upward trajectory. In this scenario, the precious metal could achieve targets starting at $2004 and extending towards $2017, representing a 23.60% correction. Investors should closely monitor these key levels for potential market movements.

Please note that we are anticipating high-impact economic data from the American economy, including non-farm payroll, unemployment rates, average wages, and the services purchasing managers index issued by ISM. Additionally, we are awaiting Canadian economic data, specifically the unemployment rate and job changes. Market fluctuations are expected upon the release of these news items.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1977.00	R1: 1992.00
S2: 1972.00	R2: 2005.00
S3: 1967.00	R3:  2016.00