Gold: Falling trendline and $1,300 is a magnet

• Gold’s love affair with the key descending trendline hurdle positioned around $1,300 mark continues.
• A bullish break could be on the cards if the US payrolls and wage growth number miss expectations by a big margin.

Gold continues to have a tough time scaling the $1,300 mark despite trade tensions and political issues in Europe.

As of writing, the safe haven zero-yielding yellow metal is flirting with the resistance at $1,298 – trendline sloping downwards from the April 11 high and May 14 high.

Throughout this week, the bulls have repeatedly failed to penetrate the double top neckline resistance (former support) of $1,302. Thus, the metal could take a big hit if the US non-farm payrolls and wage growth figure blows past expectations.

On the other hand, the immediate resistance at $1,308 (200-day moving average) could be put to test if the US data disappoint expectations. However, only a close above that level would signal a resumption of the rally from the recent low of $1,282.

Gold Technical Levels

The resistance is seen at $1,308 (200-day MA), $1,319 (April 6 low), and $1,325.91 (May 11 high). The key support levels are $1,292.19 (May 29 low), $1,284.67 (May 17 low), and $1,281.70 (May 21 low).