The bullion caught in a tight trading range between $1,269.00 and $1,290.00 since three days trading on sidelines ahead of the NFP data. But the price has been making lower low and lower high pattern.
What’s on today?
Market participants focus to Friday’s jobs report. If the data disappoints until September dollar contribution not available to the system besides, gold will be benefited with the weak data.
Barclays reported: After the United States in April, seasonally adjusted non-farm employment increased by 250,000 expected , this would imply that US job growth in the first quarter from 215,000 in March and 209,000 average continued to widen. Sub-index, the private sector in April non-farm payrolls of 240,000, the government Nonfarm payrolls increased 10,000.
The US job market is still healthy, average weekly hours feed was 34.5 hours. Household survey is expected to show a similar pace of growth and employment, because the survey showed US April unemployment rate expected to decline from 0.1 to 4.9 percent. Source: fx678
The world’s largest gold ETF – SPDR GOLD TRUST positions representing 3.9 tons to 829.44 tons.
French Foreign Trade Bank (Natixis) analyst Dada (Bernard Dahdah) that “before the end of the quarter gold will fluctuate between 1250-1300, while the Federal Reserve to raise interest rates will make the path clear. We need a very positive data from the United States but I’m not expected to occur during the quarter. ”
Natixis analyst Bernard Dahdah said, “before the end of the quarter gold will fluctuate between 1250-1300, we will be on the Federal Reserve to raise interest rates with a clear path. We need to be very positive data from the United States, but I expect It does not occur in the quarter, due to the impact of weak international growth. ”
Related article: Goldman Sachs view on NFP data
The price is trading at $1,279.00 at Asia session low made at $1,274.50 levels.
Trading resistance seems at $1,280.00, $1,284.00 and $1,286.50
Alternatively support finds at $1,274.00, $1,269.00 and $1,262.00 levels.
On Asian session, buying trade available with sl 1274.00 target $1,283.00, $1,284.00 and 1286.00 levels. Safe buying available above $1,280.50 levels. The trade involves risk.
During the day, resistance seems at $1,284.00, $1,287.00 and $1,290.00.
The 20&50Dsma finds at $1,256.00 and $1,246.00 levels. 200Wema finds at $1,257.00