Gold steady, in a range above $1210

Yellow metal consolidates around $1210, holds firm to yesterday’s gains.
Price remains capped by $1215 and supported above $1208.

Matías Salord FXStreet

Gold moved all day in a range between $1,208/oz and $1,215, around yesterday’s closing price. It consolidated Wednesday’s gains when it rose from $1200 to $1216, on the back of a slide in US yields.

Price action across financial market remained limited with the focus on UK political developments. The pound dropped sharply but other crosses move modestly. The greenback posted mix results and again ignored US economic data.

The yellow metal managed to post the third consecutive day of gains but did not trade above yesterday’s highs. The positive tone still prevails but in order to clear the way to more gains, it needs to break and hold on top of $1215.

XAU/USD Technical outlook

“The metal still offers a limited upward potential in its daily chart, as despite being in recovery mode, it's currently trading right below its 100 DMA, while technical indicators in the daily chart have bounced from their lows but hold well into negative ground and with limited upward strength”, said Valeria Bednarik, Chief Analyst at FXStreet.

According to her, the 4 hours chart, shows price hovering around a directionless 200 SMA for the last 24 hours, mid-way between the 20 and 100 SMA, while technical indicators lack directional strength, consolidating above their midlines.

Resistance levels are located at $1,216.55, $1,223.50 and $1,231.70. While on the flip side, support could be seen at $1,203.10, $1,191.20 and $1,182.75.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.