the current falling knife could not be caught by any support structure due to sentiment and fundamentals surrounding the day candle.
fundamental drive the market and lead to break of structure.
the weekly is clear ,if we try to buy back GOLD it will end in massive selloff again.
the key is to leverage on the sell and target a good buy position on intraday.
we are heading to 4000-3600 key zone for gold before a meaningful rally.
The current united states economic dockets helped strengthened the dollar and caused gold to fall sharply because the jobs report was a massive positive surprise for the U.S. labor market.
Key facts about the surprise:
Non-Farm Employment Change actual report 172K forecast 85K previous 179K difference +102K above expected
Average Hourly Earnings m/m 0.3% 0.3% 0.2% Matched expectations
Unemployment Rate 4.3% 4.3% 4.3% No change
How it helped the dollar:
Job growth blew past forecasts — 172K jobs added was more than double the 85K expected,
Fed rate hike expectations jumped — Odds of a December rate hike rose to 61% from 45% (markets were previously flirting with July cuts)
Dollar Index surged — The U.S. Dollar Index rose sharply to 99.726, its highest since April 9
Gold fell 2.23% to $4,375.4, breaking below $4,400 to close 4323 on weekly support ,this zone will be watched as the market opens for possible buy back where i will be waiting for sell on break and retest of the weekly support structure in the zone 4500-4480
Why gold fell:
Strong jobs = Fed may raise rates (not cut), increasing Treasury yields
Gold is non-yielding — higher yields make it less attractive vs. interest-bearing assets
Stronger dollar makes gold more expensive for holders of other currencies
Bottom line: The 172K vs. 85K jobs surprise signaled a resilient labor market, pushing Fed policy expectations toward tightening. This strengthened the dollar and increased opportunity costs for holding gold, causing gold prices to drop significantly.
#XAUUSD #GOLD