The precious metal has recovered some its losses and it is well off from its lows of 1162 after falling brutally on Friday. Traders have given the benefit of the doubt that the Friday US NFP data is just one off stout reading which we have received so far this quarter, but if the US retail sales data which is due on Thursday confirms that the data is backed by the higher spending, then this could make the dollar stronger and we could have a problem for Gold.
Having said that, the most important element is the FOMC battle ground next week and this will confirm the next big move for the yellow metal. If the Fed feels that the economic data is supporting their view that the economy is ready for a rate hike this year, it could push the dollar higher.
In terms of technical analysis, we have formed a complex reverse head and shoulder pattern. A pattern which is very famous among technical analysts and many traders jump on this. If the patterns complete its projection we could see the price near the $1195 level. The near term support remains near the 1160 level.