Gold turned lower on Thursday, dropping for the fourth straight session on pressure from the firm U.S. dollar ahead of Friday's U.S. payrolls report, which will give clues about whether the Federal Reserve will soon raise interest rates.
However, gold gained in Asia on Friday with investors keyed up ahead of the latest U.S. jobs report.
"Tomorrow's NFP remains the focal point," Macquarie analyst Matthew Turner said, referring to U.S. non-farm payrolls data due on Friday.
"Strong employment growth in the U.S. is what is keeping alive the dollar's bull case and any signs it is flagging, without any benign explanation such as a tighter labor market, would be very bullish gold."
Technically, June gold futures prices closed nearer the session low today. The gold bulls still have the firm overall near-term technical advantage, but are now fading and they need to show fresh power soon. Prices are still in a five-week-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,306.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,250.00. First resistance is seen at $1,280.00 and then at today’s high of $1,288.40. First support is seen at $1,270.00 and then at $1,264.70. Wyckoff’s Market Rating: 7.0
Reference: Investing, Businessnews, Reuters, Kitco
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