Gold Traders Should Prepare For NFP Volatility Friday
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Yesterday’s close: Settled at 1295.4, up 1.2
Fundamentals: Gold has traded in a quiet overnight $4.5 range at the onset of U.S hours. Positive jawboning on U.S and China trade talks did strengthen the Chinese Yuan by 0.2% against the Dollar and a lower ADP Payroll number also weakened the Dollar broadly against other currencies. However, Gold has failed to respond as Treasury prices have taken another nose dive lower. Furthermore, Gold has failed to respond to the White House calling for the Fed to cut rates and news that President Trump reached out to Fed Chair Powell early last month after the miss on job growth. Final March Services and Composite PMIs are due at 8:45 am CT, but the more closely watched ISM Non-Manufacturing read will be the highlight of the session at 9:00 am CT. We have been Neutral Gold since last Friday’s failure to get out above major three-star resistance. We do remain longer-term upbeat, however, Friday’s Nonfarm Payroll number will certainly bring volatility and traders must prepare.
Technicals: There is a lack of enthusiasm in this market as it consolidated above major three-star support at 1280.8-1287.5. This is an absolutely crucial level that is working to prop up price action, but Gold must get above 1299 in order to bring some life back to the tape.
Resistance: 1306.4***, 1311*, 1315.7-1316.9***