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Friday's NFP Data Could Make or Break Gold

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Yesterday’s close: Settled at 1284.2, down 1.5

Fundamentals: Gold is down sharply today but nearly half of it came post-settlement yesterday on the heels of less-dovish comments from Fed Chair Powell. He pointed to inflation being transitory which is working to slightly price-out rate cut odds this year. The Dollar has strengthened and Treasury prices along with Gold have take a shot to the gut. Tomorrow brings a crucial Nonfarm Payroll number for Gold, one that could save or break the metal.

Technicals: Gold’s failure to get out above major three-star resistance at 1291.3-1291.7 has left the metal immediate-term vulnerable to waves of selling and that is exactly what’s happening. We see support at the previous lows at 1267.9 and this aligns with a descending trend line that comes in today at 1264.5. We are outright Neutral in the near-term given this overall unfavorable landscape.

Bias: Neutral

Resistance: 1279.4-1280.8**, 1291.3-1291.7***, 1301.5***

Support: 1264.5-1267.9**, 1255.8-1258.5***

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