Spot gold eased from new 8-month high at $1315, posted earlier today, as dollar rose on better than expected numbers of ADP private sector employment report.
US private sector added 213K jobs in Jan vs 180K f/c and 273K, downward-revised figure in Dec.
Stronger greenback slowed gold’s bulls, which registered advance of 2.4% in past thee days, on renewed risk aversion ahead of continuation of trade talks between US and China.
Deeper pullback cannot be ruled out as overbought daily techs (slow stochastic is reversing in overbought territory and RSI is moves sideways on the border of overbought territory, unable to break higher).
Dips were so far minor and hold away from initial support at $1306 (Fibo 23.6% of $1276/$1315) and more significant $1300 (psychological/Fibo 38.2%/rising 5SMA).
Traders await the verdict from Fed’s two-day policy meeting, with wide expectations for unchanged rates and dovish steer from chief Powel, as the central bank is likely to pause rate hikes in 2019, due to deteriorating conditions in the global economy.
Res: 1316; 1320; 1325; 1328
Sup: 1309; 1306; 1300; 1296
