- Gold consolidating in narrow range between $1259 and $1274 for the past two trading session. The yellow metal declined almost $10 yesterday after better than expected ADP employment data and is currently trading around $1261.67.
- Market awaits U.S Nonfarm payroll data which will be released today for further direction. U.S economy is expected to add 171K in the month of May compared to 211K in the previous month Apr and slightly below 3- month average. Dollar is expected to trade higher if jobs data comes better than expected.
- In the hourly chart the yellow metal has formed bearish crossover (21 EMA crossing below 55- EMA) and minor weakness for the intraday is possible.
- Technically gold is facing strong support at $1260 (200- H MA) and any hourly close below will drag the precious metal till $1249 (38.2% retracement of $1195 and $1270)/$1243 (200 day MA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
- On the higher side, any close above $1274 (161.8% retracement of $11263.89 and $1247) will take the commodity to next level till $1278 (61.8% retracement of $1375 and $1122)/$1295.
It is good to sell on rallies around $1262-$1264 with SL around $1270 for the TP of $1249 /$1243..
