Back
4 Sep 2015
Gold divided between safe-haven bids & US payrolls
FXStreet (Mumbai) - Gold price on Comex steadied in Asia, hovering above the key support area, as traders preferred to remain on the side lines amid prevailing risk-off moods, keeping an eye on the upcoming US employment data due later today.
Gold awaits US NFP
Currently, gold trades modestly flat at 1124, having posted a high at 1126 and a low at 1122.90. Gold prices oscillate in a slim range this session digesting the recent USD moves triggered by Draghi and team on Thursday.
ECB downgraded their macro outlook, but were not ready to pull the stimulus trigger just yet, opting instead to wait for more data on how the recent financial and commodity markets' volatility plays out.
Looking ahead, gold prices are likely to be major impacted by the US non-farm payrolls report - a potential game-changer in terms of rate hike expectations. Higher interest rates curb gold’s allure as a non-interest bearing asset.
Wall Street is officially expecting an increase of 218,000 jobs to be reported for August, but the market might be content even with a mildly lower figure given the weak result of the forerunner from ADP.
Gold Technical Levels
The metal has an immediate resistance at 1132.90 (Sept 3 High) and 1140.40 (Sept 2 High) levels. Meanwhile, support stands at 1120.30 (Sept 3 Low) below which doors could open for 1118.40 (Aug 27 Low) levels.
Gold awaits US NFP
Currently, gold trades modestly flat at 1124, having posted a high at 1126 and a low at 1122.90. Gold prices oscillate in a slim range this session digesting the recent USD moves triggered by Draghi and team on Thursday.
ECB downgraded their macro outlook, but were not ready to pull the stimulus trigger just yet, opting instead to wait for more data on how the recent financial and commodity markets' volatility plays out.
Looking ahead, gold prices are likely to be major impacted by the US non-farm payrolls report - a potential game-changer in terms of rate hike expectations. Higher interest rates curb gold’s allure as a non-interest bearing asset.
Wall Street is officially expecting an increase of 218,000 jobs to be reported for August, but the market might be content even with a mildly lower figure given the weak result of the forerunner from ADP.
Gold Technical Levels
The metal has an immediate resistance at 1132.90 (Sept 3 High) and 1140.40 (Sept 2 High) levels. Meanwhile, support stands at 1120.30 (Sept 3 Low) below which doors could open for 1118.40 (Aug 27 Low) levels.