The bullion was trading stronger during the London session on Friday and it was seen hovering above 1,210 USD, some 0.30% stronger on the day.
Later in the session, investors will pay attention to July’s labor market data. The non-farm payroll number is seen slowing slightly to 190,000 from 213,000 in June, but still maintaining a very healthy jobs gain. The unemployment rate is expected to marginally improve from 4.0% to 3.9%, while wage growth is forecast to stay unchanged at 2.7% year-on-year.
These numbers could be dollar negative as wage growth is lagging behind inflation, but the Fed appears ready to hike two more times this year nevertheless. Gold could stage a short squeeze rally if numbers are taken negatively by the markets.
The price of gold has been dropping sharply in the last weeks and is now seen at fresh one year lows. The support for bulls is located around 1,204 USD and afterward at the psychological level of 1,200 USD.
Selling offers will be located at previous lows near 1,216 USD and if broken, the immediate bearish trend could be over, with a possible relief rally above 1,220 USD.
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