Gold trades flat, market eyes US non-farm payroll
- Gold has shown a minor recovery till $1284 yesterday after nomination of Jerome Powell as fed Chairman Successor to Janet Yellen. But minor selling happened after House of republicans released tax bill. The yellow metal dipped till $1274 and is currently trading around $1277.
- The new Fed chairman is expected to follow dovish footsteps of Janet Yellen and rat hike will be gradual. House of Republicans released the tax bill, tax cuts bracket reduced from 7 to 4 and corporate tax reduced from 35% to 20%.
- Major economic data to be released today is US Non-Farm Payroll. US economy is expected to add 312k compared to decline of 33k in previous month on account of hurricane.
- US Dollar index consolidates after hitting high of 95.15. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.70. The pair is facing major support near 94.15 (10- day MA) and any break below confirms minor weakness till 93.58 (55- day EMA)/92.60 likely.
- Technically gold is facing near term resistance around $1285 (55- day EMA) and any break above will take the pair to next level till $1290 (61.8% Fibo)/$1298. Overall bullish continuation can be seen if it closes above $1298 (50- day MA).
- Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1278-$1280 with SL around $1286 for the TP of $1262/$1250.
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