Gold hold above 1,200 in wayward trading overnight as the precious metal recovers from its lows in early trading session before turning lower again in remaining session. Gold seems to be forming a two-sided trading of late, as price action sway back and forth around 1,190-1,220 leading into Friday’s all important release of the U.S. NFP data. Technically, the yellow metal is in a period of consolidation and any chance for the bull camp to take charge would have to come on the back of candle rising above the resistance level at 1,219.
Ending weaker in choppy trading, the H4 chart shows candles not straying far from the Fibonacci Retracement 200.00% at 1,196. The support on that level was the catalyst for a leg higher as gold saw a reversal so pronounced that it moved through opening levels to post an intra-day high at 1,214. It wasn’t long however before price action dipped on profit taking to hold at 1,206 level. Despite the limitation of downside pressure on the yellow metal , gold struggled to move higher. It is likely that price action will remain weak in the near term.
Gold failed to capitalise on the strong reversal seen earlier in the day as price action give back all its gain to finish the session just above 1,206. The precious metal once again failed to break above the resistance at 1,220 and looks likely to trade the range at 1,190 – 1,220. Briefly supported at the 1,206 level, candles are constantly hovering below the moving average at 20,55 & 200.