The bullion has been trading in a narrow range in the previous days and Tuesday’s jump faded quickly, with gold losing ground on Friday, trading 0.25% weaker during the London session and seen around 1,320 USD.
Investors will watch today’s US labor market numbers. The US economy is forecast to create 205,000 jobs in February, according to the non-farm payrolls indicator. In January it had created 200,000 new working positions. Furthermore, the unemployment rate is projected to drop to a new low of 4.0% and wage growth should remain strong at 2.8% year-on-year. Optimistic numbers could be negative for the price of gold.
Gold slid yesterday amid the stronger US dollar, which is trying to recover from the strong sell-off. Trump tariffs sent the greenback lower, but exemptions for Canada and Mexico cause a relief rally.
The first strong support is seen at 1,308 USD and while above, the short-term outlook looks neutral. If this support cracks, the bullion might decline to the psychological level of 1,300 USD.
On the other hand, the resistance is located at 1,326 USD and if bullish momentum prevails today, bulls might target 1,335 USD in the initial wave. In all cases we strongly recommend to have rigorous money and risk management.
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