GOLD (10-14) IS RECOVERY POSSIBLE AFTER NF?

Gold prices edged lower on Friday, settling near $2,860 an ounce after the January US jobs report was released.

From a technical perspective, the overnight recovery and subsequent move higher on Friday confirm the positive short-term outlook for Gold prices. However, the Relative Strength Index (RSI) is flashing mildly overbought conditions on the daily chart, warranting some warnings for bullish traders. Hence, it would be prudent to wait for some consolidation in the short term before positioning for an extension of the recently well-established uptrend from the December monthly low.

Meanwhile, the $2,855 horizontal zone, followed by the overnight swing low of around $2,834, could support gold prices ahead of the $2,815-2,714 zone. Next up is the $2,800 level, which, if broken decisively, could prompt some technical selling and drag XAU/USD toward the $2,773-2,772 resistance. The latter level coincides with the weekly low, and a convincing break below would pave the way for a more profound peer corrective decline. #gold
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