SPOT GOLD falls on strong US jobs data; completion of H&S pattern is bearish signal

SPOT GOLD falls on strong US jobs data; completion of H&S pattern is bearish signal

Spot Gold price fell sharply after strong US data which raised hopes for Fed rate hike as early as March.
Friday’s bearish acceleration fully retraced past two days recovery rally which stalled at $1351 and broke below former correction low at $1332.
Fresh weakness also completed asymmetric H&S pattern on daily chart on break below the neckline at $1334, generating another bearish signal.
Bears eye support at $1324 (18 Jan trough) and may extend towards next pivotal support at $1316 (Fibo 38.2% of $1236/$1366, 12 Dec / 25 Jan rally).
Bearish sentiment is developing on increased expectations for Fed rate hike and stronger dollar, with long red candle forming on daily chart and the metal also on track for bearish weekly close.
Daily close below broken 20SMA ($1334) is needed to maintain bearish pressure.

Res: 1334; 1337; 1343; 1351
Sup: 1324; 1322; 1316; 1311