Gold flirts with 200-DMA as markets await US NFP
Having reacted to ECB and BOE announcements, gold traders keep their eyes on the US monthly jobs report for January during early Friday. Given the latest negative surprise from the ADP Employment Change, today’s Nonfarm Payrolls (NFP) becomes the key for gold prices as the metal seesaws around the 200-DMA, near $1,806 by the press time, ahead of the release. That said, the bearish bias also takes clues from late January’s downside break of a short-term key support line, now resistance around $1,820. Hence, gold prices remain on the seller’s radar until the quote crosses the $1,820 hurdle. Also acting as important resistance is the 23.6% Fibonacci retracement (Fibo.) of August-November 2021 upside, near $1,827, followed by the previous month’s peak of $1,853.
Alternatively, a positive surprise by the NFP, which is widely anticipated, could drag gold towards January’s bottom surrounding $1,780. However, multiple supports around $1,760 and December 2021 low of $1,751 will challenge gold sellers afterward. It should be observed that the bullion’s downside past $1,751 will need validation from 61.8% Fibo. level close to $1,747 before directing bears towards September’s low of $1,721.
Overall, gold buyers run out of steam ahead of crucial US data and the downside is expected to gain strength on NFP’s positive surprise.
