Gold prices rallied last Friday after US non farm payroll data slightly missed analyst’s estimates. Despite Gold's USD 47 gains, trading ended the day at the lowest weekly closing level since 2010. Gold was unable to sustain the gains from this rally, as prices fell lower on Monday. Steve notes that this reversal has signaled to investors that the relative weakness in the price of gold is expected to continue.

Steve is planning on setting shorts at USD 1,150 and USD 1,155. He is targeting the recent lows from the AB=CD and 161.8% Fibonacci levels at: USD 1,132, USD 1,116, and USD 1,103. A stop can be placed at USD 1,182.

 

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