Gold waits for US employment data near $1290
|- Neutral market sentiment doesn't help gold find direction.
- US Dollar Index stays flat on the day near 97.30.
- Eyes on the U.S. March NFP report.
The XAU/USD pair is trading in a narrow channel on Friday as investors are staying on the sidelines ahead of the critical nonfarm payrolls data from the United States. As of writing, the pair was down 0.25% on a daily basis at $1289.
Yesterday, the pair slumped to its lowest level since early March after coming under strong selling pressure with the precious metal struggling to find demand amid risk-on flows that were confirmed by the rising US T-bond yields and stock markets. However, the pair was able to recover its losses after finding support near $1280 and close the day with modest gains.
Despite the late rebound yesterday, buyers are unlikely to take control of the pair's price action until it makes a daily close above the critical $1300 mark. Moreover, if the NFP figure rebounds from February's disappointing reading of 20K, the greenback could gather strength and weigh on the pair. Additionally, investors will be paying close attention to Wall Street and headlines surrounding the U.S. - China trade conflict, which could cause the risk perception to change rapidly.
Previewing today's emplıyment data, "After the two volatile months to start this year, we suspect seasonal distortion is still affecting nonfarm payrolls data. If, as we expect, Friday’s employment report shows employers added 160,000 jobs in March, the January payroll change would be traditionally categorized as the rogue payroll print for Q1-2019,” said Wells Fargo analysts.
- US NFP Preview: 10 Major Banks expectations from March payrollsreport.
Technical levels to consider
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