Gold is trading in a narrow range between $1437 and $1381 for the past three days. The slight recovery in the yellow metal happened on hopes of rate cut by the Fed. US ADP employment data came slightly weaker than expected. It has added 102000 jobs in the month of Jun compared to a forecast of 140000. The US 10-year yield has declined further after the weak economic data and hits a low of 1.93%. Markets eye US Non-farm payroll and any further direction only after that data. It is currently trading around $1413.38.
On the flip side, near term support is around $1412 and any break below will drag the yellow metal to the next level till $1409 (5 and 34 H EMA)/$1400/$1391 (300 H E MA). Major weakness only below $1380.
The near term minor resistance is around $1422 and any break above will take the yellow metal till major bullish continuation only above that level. Any break above targets $1465.
On the data front, US ADP Non-Farm employment and US ISM services PMI which is to be released today have an impact on the US dollar index.
It is good to sell on rallies around $1417-18 with SL around $1423 for the TP of $1391.
