Gold Side-Lined Below $1280 Ahead of US NFP
The yellow metal currently consolidates its overnight rise amid cautious
trades as all eyes now remain on the highly influential US employment
data due later today.
Gold remains capped by $ 1280
Currently, gold keeps the range seen during the Asian session, consolidating previous declines, before the next move as directed by the US jobs data. The bulls defend mild gains as the demand for safe-havens is on the rise, given the prevalent typical risk-averse conditions heading into the US NFP release.
Markets are expecting a robust 200,000 increase in payrolls coupled with a respectable 0.3% gain in hourly wages. A better NFP print coupled with higher wages may fan June Fed rate hike bets, which could negatively affect the precious metal. Gold tends to benefit in a lower interest rate environment as it is a non-interest paying investment asset.
Gold Technical Levels
The metal has an immediate resistance at 1283.13/85 (5-DMA) and 1301.79/03.79 (multi-month tops). Meanwhile, the support stands at 1275 (round figure) below which doors could open for 1265 (Apr 29 Low).