Gold: forecast for May 9-15
Gold price spent the week in a consolidative mode, forming a doji candle. Bullion failed to overcome the $1300 resistance for now (January 2015 highs), but we expect the bullish move to be extended after a short-term correction.
The Friday’s US job report caused a volatility boost for the yellow metal: price gapped higher to $1280, but has quickly retraced gains. We believe the sluggish labor market lowers the chance for a hawkish Fed in June. This is negative for the greenback and positive for gold.
Trade idea: BUY gold on a decisive close above $1300, TP1 at $1325 (next major resistance, 200-week MA), TP2 at $1345, STOP LOSS at $1280