Today is being the light trading day before NFP. Markets eyed towards the Non-farm Payroll report due today. Gold prices continued to make strong progress yesterday as the dollar weakness continued to dominate the markets.
Yesterday, gold pushed to establish new highs of $1225, of 2017. However rally was short-lived and dropped, gave a closing below last week high of $1219.
Since the start of this week, market remains cautious before FOMC statement. Dollar was poised for weakness for obvious reasons mentioned in my Thursday article related with gold and oil.
Friday morning, dollar shows sign of strength and significant divergence. We have the NFP employment report from the US later today, which is likely to cause a lot of volatility and considering the fact that the ADP employment report came out strong.
It is quite likely that the NFP comes out strong as well and this could help strengthen the hands of the Fed in deciding how soon they should be raising the rates. This could be decisive day either in favor of gold bulls or risk aversion to prevails.
Let’s have a look at Gold daily chart given below:
This is Gold daily chart.
Wait and watch till Non-farm Payroll data, biased remains bearish for gold. Hovering around the weekly resistance area, might give a chance to hit back to $1200 as first target.
Market remains cautious and high volatility expected during that session, so be careful and have a good weekend.