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Gold finds resistance ahead of $1300, stays in red near $1290

  • Improved market sentiment weighs on gold on Friday.
  • US Dollar Index stays calm above 96.
  • Coming up: December NFP report and FOMC Chairman Powell speech.

Boosted by strong market demand for safe-havens and a broadly weaker greenback, the precious metal started the new year on a strong note and came within a touching distance of the critical $1300 mark on Friday. However, with the market sentiment showing signs of improvement, the XAU/USD pair lost its traction and was last seen trading at $1291, where it was losing a little over $3 on the day.

Later in the session investors will be paying close attention to December employment data from the United States and the FOMC Chairman Powell's speech. If Wall Street takes a cue from major European equity indexes and receives a boost from today's events, the metal could continue to weaken into the weekend.

Previewing today's employment data, “If the Employment Report meets expectations, it would support the Fed’s case for further rate hikes. However, in our view the FOMC is relying on coincident and lagging indicators, while leading indicators are pointing to an elevated risk of recession. Our baseline scenario is that the Fed pushes through another hike in March, then pauses, but too late to avert a recession in late 2020,” said Rabobank analysts in a recently published article.

Key technical levels

XAU/USD

Overview:
    Today Last Price: 1291.22
    Today Daily change: -3.5e+2 pips
    Today Daily change %: -0.274%
    Today Daily Open: 1294.77
Trends:
    Previous Daily SMA20: 1261.04
    Previous Daily SMA50: 1237.48
    Previous Daily SMA100: 1223.18
    Previous Daily SMA200: 1229.23
Levels:
    Previous Daily High: 1294.77
    Previous Daily Low: 1282.44
    Previous Weekly High: 1284.7
    Previous Weekly Low: 1258.1
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Previous Daily Fibonacci 38.2%: 1290.06
    Previous Daily Fibonacci 61.8%: 1287.15
    Previous Daily Pivot Point S1: 1286.55
    Previous Daily Pivot Point S2: 1278.33
    Previous Daily Pivot Point S3: 1274.22
    Previous Daily Pivot Point R1: 1298.88
    Previous Daily Pivot Point R2: 1302.99
    Previous Daily Pivot Point R3: 1311.21

 

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