Today, on March 10th, the price of gold is already down by 0,2%. At this point, gold is trading in the 1336,46 – 1337,00 price range.
The price of gold seems to continue Friday's tendency when it declined after the US Non-Farm Payrolls report indicated stronger-than-expected figures, thereby indicating a major increase in the amount of new jobs. On that day, the price declined by more than 1% down to $ 1328,77 per troy ounce amid a stronger dollar.
According to experts, the current weakness of gold is mainly connected with the Fed's tapering of its monetary stimuli, which means the US Dollar will strengthen. The probability of further tapering increased after the Non-Farm Payrolls since higher employment means a stronger economy, which leads everyone (including the Fed) to believe that there is even less necessity in further quantitative easing.
At the same time, such figures reassured investors to make them go riskier and cash out from gold and silver to invest in stocks and currencies.
Still, gold and silver may go up in value due to some geopolitical issues. In particular, the Crimean issue keeps escalating the relations between Russia and Ukraine. The USA and the EU seem to be concerned about the issue as well and are trying to get indirectly involved in ti by imposing sanctions on Russia. Still, if the situation in Ukrain and the Crimea stabilizes, the precious metals are unlikely to go up in value.
Meanwhile, Masterforex-V Academy has analyzed the CDF on gold to figure out the near-term prospects of the market.
The H4 chart below indicates the bullish trend represented by the 3-wave green count started on December 2013.
Having switched to the H1 chart, we can see the mid-term prospects of gold. 1354,60. The current level of support is 1319,66. The MF sloping channel built through the highs is marked with red.
At this point, the price is developing a mid-term retracement from the rally. The gold loses value as the US Dollar gets stronger. If the retracement continues, we may see the price reaching 1319,66. If the level is broken, we may see a mid-term reversal leading to an even deeper decline.
Still, if the price stops retracing and resumes the rally, which is less likely, it will probably break above the top of the MF sloping channel. In this case, the next closest level of resistance is 1367,40.
