FxWirePro: Gold trades flat,markets eye key events next week for further direction

Gold is trading in narrow range for past 3 weeks between $1298 and $1276. Markets eye major events which is to be released by net week for further direction.ECB has kept its rates unchanged as expected and dovish on account of uncertainties happening in global markets. The yellow metal has once again recovered form low of $1276. it is currently trading around $1282.

The major events to be happened next week are Brxit vote on UK PM May Plan B is on Jan 29th 2019 and Fed policy meeting on Jan 30th. On the data front US Non farm payroll which will be released on next Friday.

US 10 year yield hits 1-week low around 2.698% and shown a minor recovery from that level. It is currently trading around 2.733%.

On the higher side, yellow metal is facing strong psychological resistance around $1300 and break above will take the gold to next level till $1320.

The near term support is around $1276 and any violation below will drag the commodity down till $1270/$1266/$1252/$1242 /$1234.

 It is good to sell on rallies around $1286-87 with SL around $1294 for the TP of $1260/$1250.