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Gold continues to trade higher despite positive ADP job data

  • Pair is currently hovering around $1240 levels. 

  • It made intraday high at $1243 and low at $1237 levels. 

  • Yesterday US released ADP job data with positive numbers at 214K m/m vs 193K m/m previous release.

     
  • In addition, today China's Caixin Services Purchasing Managers' Index (PMI) fell from a six-month high of 52.4 in January to 51.2 in February.

  • Intraday bias remains bullish for the moment.

  • On the top side key resistance seen at $1248/$1252 levels.

  • Initial support levels are seen at $1224/$1215 thereafter.

  • Later today US will publish ISM non manufacturing data as well as factory order. This will provide further direction to the parity.

We prefer to take long position in XAU/USD around $1235, stop loss $1224 and target $1248/1268 thereafter.

 

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