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Daily FX noted The metal has an immediate resistance at 1230 (round number) and 1233.81 (1h 200-SMA). Meanwhile, the support stands at 1223.72 (1h 100-SMA) below which doors could open for1220 (psychological levels).

Even faced with a positive U.S. nonfarm payrolls report, gold’s momentum is expected to keep prices above $1,200 an ounce, according, to some analysts.

According to consensus estimates, economists are expecting to see job gains of 205,000 jobs for March. A slightly stronger than expected ADP private employment report has created some upside risk.

Bill Baruch, senior commodity broker at iiTrader said jobs gains would have to reach 250,000 to have a significant impact on gold and push prices to the key psychological support level.

According to consensus estimates, economists are expecting to see job gains of 205,000 jobs for March. A slightly stronger than expected ADP private employment report has created some upside risk.

Wednesday, payrolls processor ADP said that private companies created 200,000 jobs in March, up from expectations of around 195,000.

But the jobs report is more than just the headline number. While a strong employment figures could create a knee-jerk reaction on markets, Baruch also noted that employment gains with no wage growth could be positive for gold, similar to what happened at the start of the month. Although February employment showed job gains of 242,000, there was no wage growth and gold prices hit a session high of $1,281.10.

“You really have to look at the report as a whole and not just react to the headline number,” he said.

Reference : DailyFX, Reuters