GOLD was quiet yet again in Asia today as recently strong gains have seen profit taking set in and consolidation has been the theme prior to major short-term resistance and payrolls data in the US tonight. Gold held up very well throughout the session even as equities retreated and the USD managed to post some minor gains. Gold traded in a $1,737-46 range and finished the session stronger by 0.40% at $1,745. Another tight range and resistance towards $1,750/52 continued to limit gains ahead of key US payrolls data tonight. We did see the US senate reject the Payrolls Tax Bill today and this did cause some brief USD strength but was ultimately expected. Australian Banks were also downgraded but after early losses the banks paired gains. This left little direction for Gold until payrolls as the USD steadies and equities see small declines. Gold could be a very big mover tonight and we continue see big risks to the upside in the short term and we could hit $2000 by years end. Major ST resistance at 41,750/52 is holding firm and we must see this area taken out tonight otherwise we could see some further profit taking back towards support at $1,700/11. We favour buying dips down to $1,735 tonight with stops below $1,711 and look for the break of $1,750 if payrolls improve.
Compass Direction
Short-Term Medium-Term
BULLISH BULLISH
| $1,727 | $1,735 | $1,743 | $1,750 | $1,763 | $1,777 |
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