Gold to take a trip to $1251 on strong dollar?

Ross J Burland FXStreet

XAU/USD, Gold extended the losses for the week ahead of the nonfarm payrolls on Friday and the next major catalyst to a much firmer dollar on Thursday.

‘Further rate hike’ rhetoric from the Fed continues - ANZ

Spot gold went from London's high at $1,278.96 down to $1,266.34 by the NY close due to strong US data and the Fed's speakers in the session. The turnaround in sentiment for the precious metal was underpinned on Thursday with the political movements in Washington as well that paves way for tax cuts by a simple majority vote. US stocks continue to print new highs in the bullish environment where investors are seemingly resilient to risk factors in the background of a hellbent market currently - bearish for the non-yielding safe-haven metal.

Nonfarm Payrolls Preview: sour numbers to have limited impact of Fed's decision

However, should the nonfarm payrolls be a disappointment where the effect of Hurricanes Irma, Harvey and Maria overhang on job creation for September, the dollar could be in for some profit taking?

Gold levels

On the downside, $1262 (200-DMA), if broken opens risk to $1251 (Aug. 8 low) and $1243 (Jul. 26 low). On the flipside, resistances comes back in at $1282 (Oct. 4 high), $1295 (20-DMA) and $1300 (psychological level).

AUD/USD looking for lower ground below 0.78 handle?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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