Bullion rises as the US dollar consolidates after its buoyant rally yesterday. Global markets have been instilled with pessimism as slowdown starts to materialise in Europe. Today’s nonfarm payroll report could paint a stark contrast strong US fundamentals, which would send the greenback higher and gives gold buyers some headaches. However, should risk aversion persist, the precious metal might find more buying interests.
On the technical side, the metal has bounced from the daily support of 1280. On the 4h chart, the immediate resistance is 1297. A break above could send the price to test the psychological level of 1300.
The sentiment-price correlation chart shows the sentiment stabilising in the negative territory, a sign that the selling pressure has eased off, for now.