Gold erases three-day losses, surges to 1,138

After initial jump, which took place immediately after the US report on non-farm payrolls, the bullion managed to hold gains and close around the 1,138 mark on Friday. Gold pierced through a number of important resistance lines during that bullish move. On top of that, the metal eroded all losses that have occurred since Sep 29. In case we see the price remaining upbeat on Monday, our expectations will refocus on the topside. Bulls are aiming at the 100-day SMA (1,144) at the moment, which acts as an intermediate supply before the Sep high at 1,156.

Distribution between bullish and bearish market participants in the SWFX market remains quite positive on Monday, but the total share of the longs decreased from 56% to 53% over the weekend.