FX.co ★ Analysis of Gold for January 07,.2021 - Potential for the upside movement towards $1.927 and $1.955

Prior was 787K

• Continuing claims 5072K vs 5200K expected
• Prior continuing claims 5219K
• PUA claims 161K vs 308K prior (lowest since the pandemic)
• Total claims 19.176K vs 19.564K prior
• Full report

The reports over the holidays are tough to interpret because of all the closures. There have been some small signs of improvement in the past two weeks but it's tough to tell if that's real or a result of holidays. For instance, unadjusted claims were 922K but were seasonally adjusted lower.

The PUA drop may be due to the runoff in the program. For instance, Ohio reported zero claims in the program compared to 51K the week before.

Further Development

Analyzing the current trading chart of Gold , I found that there was the selling climax yesterday and that today we might see test of supply and consolidation but still chance for the upside.

My advice is to watch for key pivot level at $1,910 and $1,900 and if you see the rejection or successful test, long positions would be preferable with the targets at $1,927 and $1,955.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Lumber and Coffee today and on the bottom VIX and Ethanol.

Key Levels:

Resistances: $1,927 and $1,955

Support levels: $1,900