FxWirePro: Gold consolidates in narrow range, market eyes US NFP data

• Gold is consolidating in narrow range between $1317.97 and $1301.70 for past three trading days. The yellow metal weakness was mainly due to easing geo political tensions especially North Korea and strong dollar. US dollar index has shown a minor recovery after hitting low of 92.35.US economic data released recently shows that US is much stronger than compared to Eurozone especially CPI data . Eurozone CPI data released yesterday came at 1.2% y/y compared to forecast of 1.3% y/y.US 10 year yield is showing minor profit booking after hitting high of 2.998% yesterday. It is currently trading around 2.946%.
   
• US economy is expected to add 193000 jobs in the month Apr compared to previous month of 103000 and average hourly earnings m/m to be at 0.2% compared to 0.3% in previous month. The yellow metals near term resistance at $1318 (trend line support turned into resistance)) and any break above will take the yellow metal till $1322.50 (100- day MA)/$1327 (55- day EMA). 
   
• On the lower side, near term support is around $1302 (200- day MA) and any daily close below will drag the yellow metal down till $1294.

It is good to buy on dips around $1307-08 with SL around $1300 for the TP of $1320/$1325.