Prices Down As USD Strengthens On China Unrest

Gold prices are down about 0.3% to around $1750/oz as the USD has risen 0.4% on the back of Covid-related unrest in China. They are off the day’s low of $1746.13. Bullion reached a high early in today’s session at $1754.11.

• Gold prices continue to range trade within its support level of $1726.40, the 20-day EMA, and resistance level of $1768.50, the November 15 high and bull trigger. It has been trading between $1700 and $1800 since November 10.
• There is very little scheduled for later. NY Fed’s Williams speaks, which will be important for gold, especially if his comments are on the dovish side. Developments in China will continue to be important for their impact on the dollar. The main focus of the week will be US payrolls on Friday, where further labour market slowing would support bullion.