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(Kitco News) – Gold is in a heavy consolidation phase ahead of the U.S. labor report later in the session. The price has been stuck between $1745/oz and $1770/oz for seven days now and today could be the catalyst for the break.
Looking at the chart the signs are positive ahead of the release. One of the main features on the hourly chart is the triangle marked by the purple trendlines and the price looks to be heading towards the top of the structure.
Elsewhere, the price is above the volume point of control where the red horizontal line is based. The next low volume node resistance is at the orange zone near $1770/oz and beyond that, there is another resistance at $1783/oz. If the result is very negative then the $1800/oz area could be tested too.
On the downside, the purple zone at $1745/oz is the first point of call. Below that, the main consolidation low stands at $1721/oz, and if this breaks there is some space to the downside until the next level is tested ($1680/oz).
The analyst consensus is 500K but the lowest estimate stands at 400k and the highest at 1000k but as always NFP is a bit of a coin flip event.
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