“¢ Limited USD downside offsets reviving safe-haven demand and cap gains.
“¢ Investors also seemed reluctant to place bets ahead of the US jobs data.
Gold regained some positive traction on the last trading day of the week, albeit seemed struggling to build on the positive momentum further beyond the key $1200 psychological mark.
Global trade tensions escalated further on Thursday after reports suggested that the US President Donald Trump is considering taking on trade issues with Japan. This coupled with anxiousness over the new US tariffs on additional $200 billion worth of Chinese imports kept benefitting traditional safe-haven assets and pushed the precious metal to weekly tops on Thursday.
Meanwhile, the US Dollar downfall has been limited so far and was seen as one of the key factors keeping a lid on any further up-move for the dollar-denominated commodity. Moreover, investors also seemed to refrain from placing any aggressive bets ahead of today’s release of the keenly watched US non-farm payrolls data.
The US economy is expected to have added 191K new jobs in August and the unemployment rate is also seen ticking lower to 3.8%. The key focus, however, would be on the wage growth figure, which might influence Fed rate hike expectations and eventually determine the next leg of a directional move for the non-yielding yellow metal.
Technical levels to watch
Immediate support is pegged near $1196 horizontal zone, below which the commodity is likely to head back towards testing weekly lows, around the $1190 region, before eventually falling to $1185-84 support area. On the upside, the $1206 level might continue to act as an immediate resistance, which if cleared might lift the metal back towards $1212 supply zone ahead of the $1216 horizontal resistance zone.
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