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Gold flat after hold of 1,351.60 support Friday; Elliott Wavers paint a dire picture

FXstreet.com (Barcelona) - The technically “teetering” gold futures were thrown a life preserver Friday in the form of a weaker-than-expected monthly US employment report.

Weak jobs report led to weaker DXY and gave previous metals a boost

Gold futures rallied just over $13 on Friday – which isn’t much in the grand scheme of things. However, the fact that the rally happened just above support at 1,351.60 and on a lack of any major US / Syrian headlines has the hopeful gold bulls chirping a bit.

We will definitely be seeing major US / Syria news flow this week as well as market moving news out of China, British inflation data, employment reports out of Britain and Australia, the ECB’s Monthly Report and US Retail Sales numbers on Friday – all of which might push the DXY in one direction or another.

Technical outlook for gold

Technicians say that at this point gold below 1,421 is very bearish – to the point that downside targets are all the way down below 1,100. Shorter-term support comes in at 1,351.60, 1,328.50 and 1,314.27. A close above 1,416.40 would have the technicians reconsidering their bearishness.

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