Gold futures on Comex had a negative start to the week, with markets resorting to profit-taking after last week’s extensive rally backed by underlying strong investment demand.
Gold finds support above hourly 50-SMA at 1256.10
Currently, gold trades -0.18% lower at 1268.50, recovering from a brief dip to 1258.30 session low. The bullion is currently seen making a minor recovery attempt, having stalled its corrective slide, on the back of mixed sentiment persisting in Asia so far, which offers some respite to the bulls. While strong investors’ demand also continue to underpin prices.
Last Friday, the yellow metal rallied to the highest level since Feb 2015 just ahead of $ 1280 mark after the US labour market report failed to support further Fed rate hike bets this year. Although NFP bettered expectations (242k actual vs. 195k exp.), average hourly earnings grew only 2.2% y/y in Feb, missing the expectation for unchanged performance over the month at 2.5%.
The week ahead remains calm with regard to the US economic events while next week’s FOMC meeting remains in focus. Also, Tuesday’s China trade data is expected to have major impact on the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1270 (round number) and 1280.60 (13-month high). Meanwhile, the support stands at 1258.30 (daily low) below which doors could open for 1251.30 (post-NFP low).
(Market News Provided by FXstreet)