Precious-Gold continues to tread water in a well-defined range near the $1100/oz figure as prices await a new directional catalyst. Near-term support level is at 1078.10, the 23.6% Fibonacci expansion level, with a break below that on a daily closing basis exposing the 38.2% level at 1058.48. Alternatively, a push above the 23.6% Fib retracement at 1102.94 clears the way for a test of the 38.2% threshold at 1122.52.
XAUUSD rose for a second straight session on Friday ahead of the release of the U.S. nonfarm payrolls that is likely to shape the Fed’s rate hike decision and two weeks of consolidation have set up yellow metal for a powerful breakout. The direction of the move will likely be determined by today‚Äôs U.S. Non-Farm Payrolls report, due to be released at 15:30 broker’s time (GMT +2:00)
Traders expect the report to show the economy added 222K new jobs in July. A number substantially higher will likely trigger a strong rally by the U.S. Dollar and a subsequent sell-off by Gold. A number substantially lower will likely fuel a strong short-covering rally.