Gold extend losses for third day, falling back below 1200 as it struggles to find any real direction. The yellow metal continues to trade heavily, testing supporting at Fibonacci Retracement 61.8% , on the note of USD strong and increasingly positive U.S. data. Ahead of Friday’s U.S. NFP data, market is exercising caution which should continue to drive price action in a tight range.
As per the norm, prices were steady in early trading, overnight, with focus on physical demand from Asia rising the precious metal to 1,209. Despite the gains, the metal remains under pressure and slid thereafter to hit support above the Fibonacci Extension at 200.00%. Stoic. Oscillator indicator portrays further negative sign, as trend line continues to dwell within the oversold region.
Price action fell precipitously on the H1 chart, holding below 1,203 level. Technical has shown the testing of the robust support level at 1,200 several times. Near term, prices action is unlikely to break out of their current range between support at 1,195 and resistance at 1,223. The outcome of the Friday’s U.S. NFP data will determine the direction of the yellow metal.