Gold struggles for direction around $1,570/oz

The ounce troy is down smalls below the $1,570 level.
Persistent risk-on mood tempered the rebound in the metal.
Markets’ attention is now on upcoming US Non-farm Payrolls.

Pablo Piovano FXStreet

Prices of the ounce troy of the precious metal appear to have met a decent resistance in the vicinity of $1,570, where sits the 10-day SMA.

Gold looks to risk trends, data

After two consecutive daily advances, prices of the precious metal seem to have run out of steam amidst the prevailing risk-on mood in the global markets and ahead of the key US Non-farm Payrolls.

In fact, news that China will halve its tariffs on US imports under the ‘Phase 1’ trade deal has boosted the appetite for riskier assets, while market participants continue to deem as positive the increasing efforts from the Chinese authorities to contain the Wuhan coronavirus, all morphing into further selling interest around bonds, the yen, and gold.

In the US docket, all the attention will be on the publication of the monthly report from the labour market: consensus expects the economy to have added 160K jobs during last month and the unemployment rate is seen muted at 3.55, multi-decade lows.

Gold key levels

As of writing Gold is losing 0.09% at $1,565.45 and faces the next support at $1,547.67 (monthly low Feb.5) seconded by $1,536.11 (low Jan.14) and then $1,514.10 (61.8% Fibo of the December-January rally). On the upside, a breakout of $1,574.21 (38.2% Fibo of the December-January rally) would expose $1,593.90 (monthly high Feb.3) and then $1,611.34 (2020 high Jan.8).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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