Gold Attempting a Move Back to 100-DMA Near $1220
Gold maintained its bid tone on Wednesday and is inching back towards 100-day SMA to currently trade near $1217 level market participants brace for a substantial increase in volatility heading into the ECB monetary policy decision on Thursday and NFP data on Friday.
On Wednesday, Gold reversed from 100-day SMA and dropped to $1206 on upbeat ISM manufacturing PMI print that further fueled expectations that the Federal Reserve will raise interest rates at its meeting later this month. The precious metal, however, trimmed its losses after the Fed Beige Book offered a subdued take on the US economy.
The precious metal extended its recovery on Thursday as traders now look forward to Friday's monthly jobs in order to determine the timing of next Fed rate-hike move.
Immediate focus would remain on today's ECB monetary policy decision, which would influence the greenback and eventually trigger some tradable moves in the yellow metal.
Technical levels to watch
On the immediate upside, bulls are likely to aim for a move above 100-day SMA resistance near $1220 level, which if conquer should extend the recovery momentum immediately towards $1225 horizontal resistance. Beyond $1225 resistance, the metal is likely to appreciate further towards retesting 50-day SMA strong support, turned resistance, near $1245-47 region.
On the flip side, a rejection back from 100-day SMA hurdle and a subsequent drop below Wednesday's low support near $1206-05 area should expose the very important $1200 psychological mark support. The fall could further get extended towards $1190 (Feb. 16 lows).