Investors are scaling back their positions in Gold ahead of the US non-farm payrolls release, pushing the metal back to around monthly 100-MA at $1263 levels.
Eyes US data
Whether the metal continues its uptrend or witnesses a sharp corrective rally depends on the non-farm payrolls print and wage growth figures in the US. Markets do not see Fed raising rates this year; however, a strong report could see 2016 rate hike bets rise above 50%.
Accordingly, the demand for the metal may drop. On the other hand, a dismal report could see investors running for cover under safe haven metal. Moreover, the action in gold is also partly dependent on the movement in the USD index.
Gold Technical Levels
The metal currently trades around $1263/Oz. Prices set a high of $1274.79 earlier today. The immediate hurdle is seen at 1285.80 (Feb 1 high), above which the prices could test the psychological level of $1300. On the other hand, a failure to sustain above $1263 (Feb high + monthly 100-MA) would open doors for a re-test of multiple supports on the daily chat seen around $1240.
(Market News Provided by FXstreet)