Gold does not see any buying interest due to the Lunar New year festival. The US data showed that the consumer spendings rose above expectations (+0.4%) in the month of December. Earlier hours in this week gold started its trading day with a bearish note. Last Monday, gold made a high at the level of $1,279.1, maybe gold made a short-term top. Gold is trading at the level of $1,243 as of now. The direction has been lacking and gold has remained in the range of $ 1,237-$1,255. Last two trading sessions, gold was holding its support at the level of $1,237 major bear grip on below this level. This week traders will eye nonfarm payrolls.
In the weekly chart, gold broke and opened trading this week below the trend channel. Now it is trading below the lower trend line, which provides a fresh bearish thoughts. More downward movement was expected in the weekly chart. Indicators have been giving sell signals, so if gold breaks the previous week's low at the level of $1,237, next parallel support will be at $1,231. This is the trend decider level in coming trading sessions.
Support- $1,237, $1,231.
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