Gold Extends Slide Below $ 1280, US ADP Jobs Eyed
The bearish pressure around the yellow metal aggravated during the
European trading hours, pushing the prices further into the red
territory below $ 1280 mark.
Gold: Losing sight of 15-month tops?
Currently, gold drops -0.62% to 1276.66, having posted fresh session lows at 1276.14 some minutes ago. The bullion ran through fresh offers as the US dollar halted its consolidative mode and picked-up significant strength against its major rivals in the last hour, driving the USD index back towards fresh three-day highs previously posted at 93.28. A rising greenback makes dollar-priced commodities more expensive in other currencies and so less attractive for international buyers.
Looking ahead, focus now shifts towards the US employment data due later in the NY session, which will provide fresh cues on the strength of the US economy as also on the Fed interest rates outlook. The ADP employment report is expected to show the private sector to have created 195,000 new jobs in April, following 200,000 a month before. Gold traders will also track the services PMIs, trade balance and factory orders in the US session for further momentum.
Gold Technical Levels
The metal has an immediate resistance at 1301.79/03.79 (multi-month tops) and 1345 (July 2014 levels). Meanwhile, the support stands at 1275 (round figure) below which doors could open for 1265 (Apr 29 Low).