On Friday, the precious metal gold’s prices continue to drift lower to place a low around 1,266 as US Dollar extended gains beside Treasury bond yields.
From here, all eyes aim to April’s US jobs report which is due later today. Refer to Ditto Trade May 3 Brief to have a quick idea about it. A surge of 190k in nonfarm payrolls and a steady unemployment rate at 3.8% are on the cards. While the headline wage inflation is seen firming to 3.3% on-year. I won’t be exaggerating if I say gold’s movement is solely dependent upon the US Labor market report today.
Quick Technical Outlook
At the moment, gold is trading around 1,270, right above a stable support area of 1,266. It’s also a double bottom pattern which supported gold back on April 23.
The 20, 25 and 50 periods pushing gold lower, suggesting a bearish bias of traders. While the doji pattern above a double top pattern is attractive bulls for gold.
Key Trading Level: 1270.55
Gold – Trade Idea
Investors are advised to keep a close eye on 1,270 today as gold likely to trade bearish below this level, and buying is expected on the violation of 1,270. Just a quick tip, the trend will be determined by the NFP figure today, so don’t forget to monitor it. All the best!