Gold Daily Analysis – December 11, 2017

Gold prices extended losses on Friday after the better than expected nonfarm payrolls and reports of a breakthrough in Brexit talks. Risk of sentiment continued to support the dollar strength which led to the safe-havens’ largest weekly drop since May. Gold is trading slightly higher on Monday morning but remains near Friday’s lows. The precious metal will be highly affected by central banks meetings, US tax reform, and Bitcoin in the upcoming week.

U.S. non-farm payrolls rose by 228,000 jobs in November, as the post-hurricane recovery in the labor market rose more than economists’ forecasts of 200,000 new jobs.

Technical view

Gold 4H chart has formed a “Falling wedge” pattern. The last market session was crucial as prices continue to trade in the channel. Gold remains in bearish momentum.

Once it reaches the channel’s resistance line, we can expect a retest, otherwise, if prices continue to fall, the trend is expected to continue on in the channel. Resistance holds at $1260 and Support at $1247.