Gold has been trading sideways since the end of September. Retracements of the correction started at the beginning of September act as limits of the trading range - 38.2% retracement as resistance and 23.6% retracement as support. However, downward move of the precious metal have been often limited by the 200-hour moving average (purple line). Gold tested this moving average last night and has once again failed to make a break below. Price jumped after this failed attempt and is now testing the upper limit of the trading range. A break above the 38.2% retracement at around $1,765 would open the way for a test of the post-NFP highs near 50% retracement ($1,777 area).
Speech from Richard Clarida scheduled for 4:15 pm BST may trigger some moves on gold as Fed Vice Chair will speak on "US Economic Outlook and Monetary Policy. However, more important events for gold traders are scheduled for the later part of the week. FOMC minutes as well as the US CPI inflation data for September will be released tomorrow and both may turn out to be triggers for elevated volatility on the gold market.
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Source: xStation5
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