Gold price recovered well recently and moved above the $1200 level against the US Dollar.
The next possible barrier for buyers is at $1230, and the 100-day simple moving average.
There is also a monster bearish trend line with resistance at $1280 on the daily chart of Gold price vs USD.
The US nonfarm payrolls will be released by the US Department of Labor today, forecast is 175K in Jan 2017 vs 156K previous.
Gold Price Technical Analysis
We recently saw a nice upside ride in gold price against the US Dollar with a close above $1200. Now, the price faces a couple of important hurdles on the upside near $1230, $1250 and $1280.During the recent upside, the price managed to clear the 23.6% Fib retracement level of the last decline from the $1337 high to $1122 low. It is also just above the 38.2% Fib level of the same wave. However, the price is facing resistance at $1230, and the 100-day simple moving average.So, there are chances of a reaction near $1230 going forward. The same level also represents the 50% Fib retracement level of the last decline from the $1337 high to $1122 low.
Caixin China Manufacturing PMI
Today, the Chinese Caixin Manufacturing PMI was released for Jan 2017. The market was aligned for a minor decline from 51.9 to 51.8.However, the result was a bit lower, as there was a decline from 51.9 to 51 in Jan 2017. The Gold price was seen moving down a few points after the result. But, it remained above the $1210 support and $1200 pivot.
US Nonfarm Payrolls
Today, the US nonfarm payrolls figure for Jan 2017 will be released by the US Department of Labor. The market is aligned for the number of new jobs created to post 175K, compared with the last reading of 156K.Also, the US Unemployment Rate is expected to remain at 4.7%, and Average Hourly Earnings are forecasted to increase by 0.2% in Jan 2017, compared with the previous month.Overall, the market is waiting for a positive result, and if the actual fails to meet the expectation, the USD may face selling pressure.
During the recent upside, the price managed to clear the 23.6% Fib retracement level of the last decline from the $1337 high to $1122 low. It is also just above the 38.2% Fib level of the same wave. However, the price is facing resistance at $1230, and the 100-day simple moving average.So, there are chances of a reaction near $1230 going forward. The same level also represents the 50% Fib retracement level of the last decline from the $1337 high to $1122 low.