Gold Analysis
Afternoon Session: Gold futures heading lower after three straight weekly gains post NFP, will it break the support 62150?
Highlights
- US Nonfarm Payrolls (NFP) came in better than expected, rising 216K in December vs. 173K prior
- Pressured by the elevated dollar and rising 10year Treasury bond yield notes
- Gold futures for February delivery were trading lower by $6.3 or 0.31% at $2043.50 per ounce on the Comex division of the New York Mercantile
- Traders lower bets on interest rate cuts from Fed
Overview
Gold prices stabilized following mixed U.S. economic data, leaving traders in search of further clues regarding the Federal Reserve's interest rate cuts. While U.S. employers added more workers than anticipated in December, the Institute for Supply Management (ISM) reported a significant slowdown in the services sector. Investors now await a crucial inflation print later in the week. Additionally, China's gold reserves rose to $148.23 billion by the end of the month, up from $145.7 billion at November's close.
MCX gold marked traded in a tight range with negative bias and closed with doji kind of candlestick pattern on daily chart suggesting consolidation may continue. On the downside, the support for the MCX Gold is seen at 62150,61900 and 61390 levels. Breakdown of 60780 can test at 60350-250 levels. The resistance will be at 62890, 63400-800, 64070 and 64500 levels. Technically the short-term trend on MCX GOLD is likely to remain consolidation mode and traders are advised to trade with strict stoploss ahead of US CPI data.
Support and Resistance Levels:
