Gold rally extends to $1,158 as Dollar suffers from weak NFP

on January 11 2010 2:55 AM

FXstreet.com (Barcelona) - Gold prices have soared during Monday's Asian session, and rebound from Friday's low at $1,119.60 has extended above $1,140 resistance to a fresh 4-week high at $1,158, fuelled buy post-NFP Dollar weakness.

Art the moment, the XAU/USD is trading at overbought levels - in hourly and intra-day charts -, with initial resistance area at $1,158, session high, and above here, $1,168.50 (dec 7 high), and $1,180/82. On the downside, support levels might be located at $1,140 (Jan 6/8 low), and below here, $1.128.55 (Jan 4 high/Jan 7 low) and $1,119.35 (Jan 8 low).

One of the reasons of Gold's strength has been the weaker than expected U.S. Non-farm payrolls report; net employment fell by 85K in December, against market expectations of a 2k decline, which has triggered a widespread Dollar decline; EUR/USD has rallied from 1.4260 pre-NFP to 1.4530, while GBP/USD rose from 1.5955 to 1.6135 and the USD/JPY pulled back from 4-month high at 93.70 to 92.15 area.

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