Gold is consolidating after better than expected U.S NFP and softer ISM data

Gold was sold off from 1976-1978 after good U.S NFP because the US Dollar and Yield went up. However, gold could not break the 1940-1941 zone and made a correction to 1963-1965 on June 5 after softer US ISM data.

On H4 chart, gold is forming a trading range from 1940 to 1980. It is waiting for Fed monetary news to break out of the 1940-1980 range.

Gold H4 chart after U.S NFP and ISM reports

On lower time frame H1 chart, gold is not able to break the 1961-1963 zone to go up to the 1976-1980 zone. Gold will be choppy from 1943 to 1963 or 1951 to 1981 in the next several days following U.S Dollar Index.

The 1963-1965 is the key zone to watch for today June 6 gold short term trend. Not breaking the 1963-1965, gold will drop to test the 1940-1945 zone, but it will go to 1976-1981 if the 1963-1965 is broken.

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