Gold has firmed up and is consolidating higher after trading more than $20 off of the highs it made on Friday.
On Friday, nonfarm payroll data beat expectations with 165,000 jobs added, causing equities to remain the main focus over gold for fund managers and institutions. However, gold is attempting to find some footing to begin the new week.
Gold has consolidated in a range that we have defined to be between $1,437.50 and $1,487.50. After testing the exact high of this range on Friday, gold put in a session low at $1,455.40, which was very important for the bull camp, since Thursday's low was $1,448.10 and so a higher low avoided an outside bearish day.
After closing nearly $10 off of the lows on Friday, gold reached $1,478.40 on Monday morning, a major level that we have eyed. Look for this high to be a solid level of resistance on Monday. A close above this level will give a bullish feel, likely allowing the market to extend the range up to $1,505.50 before week's end.
On the downside, $1,467 is a major pivot point. As long as we can continue to see closes above here, the bull camp will remain in control. Only a close below Friday's lows against support at $1,455 to $1,458.50, and further below to $1447.20, will send this market into bearish consolidation territory.