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Prices Range Trading Post-Payrolls

GOLD

Gold prices are 0.2% higher rising to $1877.15/oz after rising 0.3% on Tuesday. Bullion has been trading in a narrow range after falling sharply following the very strong payrolls report on Friday. It didn’t react strongly to Fed Powell’s comments as he talked about disinflation but also that rates needed to rise further. The USD is down slightly today.

  • Gold is in a corrective cycle and trend conditions remain bearish. Support is at $1861.40, the February 3 low, and resistance remains at $1899.90, the 20-day EMA. Prices are holding above the 50-day simple MA.
  • Later today the highlight of the calendar is a number of Fed speakers, as the only data is wholesale inventories. Any dovish comments would be supportive of bullion.

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