It is the fear of a good US August jobs numbers which is preventing the gold price from breaking past $1836. The whole world knows that $1836 is the key resistance for gold. Gold will rise very quickly to $1919 if it manages to break and trade $1836. There are buyers on dips in gold as long as it trades over $1800.
I am asking myself “Will a million US August nonfarm jobs result in an early taper”. To the world one million NFP jobs creation (without downward revision in previous month) will cause a big crash in gold and silver price accompanied by a very sharp rise in US dollar index. I do not want to be foxed by a million NFP jobs in August. (just in case). Most of us get foxed by trading on the basis of headline NFP. My view is that trend of gold for for at least four consecutive trading sessions after NFP is the key. Labor Day holiday is on the 6th September. Gold's price trend on or after 10th September is the key. Gold price crash can be fake also if a million NFP job is created. $1770 is the crash point for gold after NFP. Breakout zone is $1840-$1850 zone after NFP. There is always overshooting and undershooting of technical support and technical resistances after the release of key US economic data releases and Federal Reserve meeting.
We are all interested in short term trading opportunities in gold. Everyone knows that gold is a long term buy. Short term investment interest by masses creates higher volumes, higher volatility and even higher prices. Why does everyone like to trade in bitcoins and crypto currencies? Extremely high short term volatility but a good trade and you own a miniaturized central bank. Gold has to show such tendency off and on in the short term. US August nonfarm payrolls followed by FOMC meet on 22nd September gives us one such short term profit making opportunity. Mental preparation beforehand is the key to avoiding panic.