FxWirePro: Gold hits six week low, markets awaits US NFP for further direction
Gold prices sank to the 6 week low as investor’s optimism for a June rate hike rose to highest level. According to Fed Funds futures the probability of fed rate hike in Jun increased to 97% form 67% before Fed policy. Th…
Gold prices sank to the 6 week low as investor’s optimism for a June rate hike rose to highest level. According to Fed Funds futures the probability of fed rate hike in Jun increased to 97% form 67% before Fed policy. The yellow metal breaks major support at $1233 and declined till $1225.
Markets Awaits U.S Non-Farm Payroll data which is to be released today for further direction. U.S economy is expected to have added 185k compared to 98K previous month.
Technically gold is facing strong support at $1219 (100 – day MA) and any break below will drag the yellow metal down till $1209/$1200. It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1242 (100 EMA) and any break above targets $1252 (200 day MA)/ $1261 (daily Kijun-Sen).
It is good to sell on rallies around $1260-$1262 with SL around $1272 for the TP of $1245/$1241.
