Gold traded with a negative bias through the early European session on Friday and extended the overnight retracement from nine-month tops.
February 1, GKFX – With investors looking past dovish FOMC message, a late US Dollar rebound on Thursday undermined demand for the dollar-denominated commodity and prompted some profit-taking amid near-term overbought conditions.
Risk-on mood amid US-China trade optimism adds to the selling pressure
This coupled with improving risk sentiment, as depicted a positive tone around equity markets amid US-China trade optimism, further dented the precious metal’s relative safe-haven appeal and collaborated to weaker tone.
The commodity, for now, seems to have snapped five consecutive days of winning streak as the market focus now shifts to the US monthly jobs report (NFP), due for release later during the early North-American session.
Today’s US economic docket also highlights the release of ISM manufacturing PMI and should further collaborate towards producing some meaningful trading opportunities on the last trading day of the week.
Gold price technical forecast
Any subsequent slide is likely to find support near the $1312-11 region, below which the metal is likely to accelerate the fall further towards challenging the key $1300 psychological mark. On the flip side, the $1321-22 region now becomes immediate resistance, which if cleared might now lift the commodity further towards $1330 supply zone.
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