Gold inches up pre job but looks timid

MoM Team / Mumbai, Feb 03, 12:54 PM

Gold futures inched up ahead of the jobs data later today but the gains look capped until gold stays below $1770 levels.



The US Non-Farm Payrolls Figure is likely to dictate the direction markets take and traders can expect extreme volatility when the indicator is released at 13:30 GMT. At the moment analysts are predicting that the US added around 150K jobs in January.



A worse than predicted result is likely to weigh down on the dollar and could give the euro a significant boost to close out the week. A better than expected figure is entirely possible, and could result in dollar gains ahead of markets closing for the weekend.



Wednesday's ADP Non-Farm figure, which is widely considered an accurate predictor of today's news, came in below expectations and resulted in some bearish movement for the US dollar.



COMEX April gold is expected to face a resistance near $1770 levels and a move above that may take it above $1800 levels or else it may fall below $1750 and $1730 levels.



Domestic gold futures are expected to face a resistance near Rs 28600 levels today and a fall below Rs 28440 levels may take it to Rs 28370 and Rs 28250 levels.



 

Source: Capital Market