Gold is threatening to drop below hourly 200-MA level of $1236.57 ahead of the data in the US, which could show private sector employment growth slowed in February.

Gold to snap two-day winning streak?

A break below hourly 200-MA would increase the odds of the metal ending the two –day winning streak. Furthermore, a stronger-than-expected ADP could push the metal lower as well.

Meanwhile, there is a risk the dollar selling may resume in the US session if the data disappoints. However, the odds of a bearish move appear strong, especially since and oil equities are trading upbeat as well.

Gold Technical Levels

The immediate hurdle is seen at $1244.12 (daily high), above which prices could test resistance at $1253.32 (Feb 24 high). Conversely, a breakdown of immediate support at $1234.63 (daily low) would expose $1225.61 (Mar 15 low).

Gold is threatening to drop below hourly 200-MA level of $1236.57 ahead of the data in the US, which could show private sector employment growth slowed in February.

(Market News Provided by FXstreet)

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By FXOpen