04.02.201404:52 Forex Analysis & Reviews: Technical analysis of gold for February 04, 2014

Long-term review

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The gold price closed positively on Monday having found support from the previous two days' low of $1,237.7 and resistance at Thursday's high of $1,267. After a closely-watched US factory barometer dipped in January posting a 7-month low. Purchasing managers index fell to a record low of 51.3, while analysts expected it to be 56.4.

Investors are focused on gold as well. Chinese traders are still on holidays. Markets will be closed until Friday. This week, traders will keep track of nonfarm payroll numbers .This morning, the metal opened at the level of 1,257, but then found resistance at yesterday's closing price. The day started with a weak opening.

In the weekly chart, gold traced its first weekly drop in 6 consecutive weeks.

In the daily chart, Stochastic and RSI are positive. The yellow metal is trading above the 21DEMA. In the daily chart, oscillators gave a downward direction.

Support: $1253, $1,250, $1,240

Resistance: $1,266, $1,270 $1,279

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