Article by: ETO Markets

The job market appears to be resilient, according to US macro-data reported on Wednesday, but there is still ambiguity regarding the Fed's next course of action. This limits the upside for the price of gold priced in US dollars and supports the greenback somewhat coupled with a moderate increase in US Treasury bond yields. Still, the precious metal is expected to post a weekly increase for the second time running as traders await the release of the flash US PMIs on Friday to provide some momentum.

Support in the $… range and the weekly low, which is in the $… range, come next. The 200-DMA, which is presently at the $… level, and the $… confluence, which consists of the 50- and 100-DMAs, might be revealed by a strong break below the latter.

Conversely, the $… threshold may persist in serving as a direct barrier in front of the $… zone. A little follow-through purchasing will be viewed by optimistic traders as a new catalyst, enabling the price of gold to continue rising toward the $… resistance level.