Gold is climbing back towards previous March highs after U.S. employment data printed stronger than analyst expectations. Although the Dollar initially climbed in reaction to the news, the risk trade has since posted a solid rally amid an improving global economic landscape. Uncertainty is cooling in the ECB and the impact from the possibility of a hung UK parliament has sunk in. Therefore, the focus is on today’s improvement in the U.S. labor market and the impact this could have on U.S. consumption. Meanwhile, gold remains in a favorable position with only our two makeshift downtrend lines running through March highs. The more substantial uptrend lines are long gone, meaning gold’s topside obstacles could be far and few between should global economic fundamentals continue to improve. The data wire will begin the week relatively quiet, though data flows will pick up with key China releases on Wednesday and Thursday. For the time being gold may continue to follow a positive correlation with the risk trade barring a negative psychological development in the EU or UK.

Technically speaking, we’ve formed two new makeshift downtrend lines running through 3/3 levels to give investors an idea of present resistance. Gold is still well above downtrend lines running through 2/19 and 1/11 highs, meaning there aren’t any foreseeable noteworthy downtrend lines in play right now. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 3/2 lows. Additionally, the highly psychological $1100/oz level could serve as a reliable technical cushions should it be tested.

Present Price: $1138.55/oz

Resistances: $1138.68/oz, $1140.96/oz, $1143.46/oz, $1146.29/ oz, $1149.24/oz, $1151.54/oz

Supports: $1135.10/oz, $1133.06/oz, $1131.07/oz, $1128.97/oz, $1126.71/oz, $1123.03/oz

Psychological: $1100/oz, $1150/oz, January Highs, March Lows

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