Since we are approaching New York trading sessions, we can see fresh buyers entering above $1225, a major resistance area. The precious metal is maintaining a bullish momentum from 5 consecutive trading days and soared 2.4% last week.
Besides this, investors focus remain on the average hourly earnings that expanded only 2.5% in January, missing the forecast and loitering from 2.8% in December, arousing concerns among the investors about the U.S economy and heightened speculation that the Fed may avoid the interest rate hikes too promptly.
Apart from labor market figures, investors solicited the observed safety of the precious metal amid mounting anxieties across political risks around the globe.
At the moment, the Gold is trading at 1,231.65, adding +10.85 points and +0.89% for the day. As recommended earlier in the morning brief, the yellow metal achieved the target at $1227 and is currently aiming $1233. As we can see in the chart, it is holding above a strong resistance come support level at $1224 and still consolidating above the area.
Based upon the fundamentals, I would recommend investors to wait for a slight retracement to have a buying positions, but only above $1225, with a stop loss around $1223, aiming at the target of $1233.
Happy Trading!
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