Gold strengthens ahead of the non-farm payrolls release

New York (Feb 5)  Gold prices advanced to a fresh three-month high of USD 1160.71 levels ahead of the non-farm payrolls release in the US, which is expected to show job growth slowed in January.

Trades above 61.8% Fibo level

Prices are trading above USD 1157.23 (61.8% of Oct high-Dec low). But, whether the prices extends gains above the Fibo level or falls back depends on the payrolls number. A point worth noting is the yellow metal looks overbought on intraday technical charts after having rallied almost $90 since mid-January.

This makes it more vulnerable to a better-than-expected NFP figure. As of now, the prices are trading around USD 1159/Oz levels.

Gold Technical Levels

A break above the immediate resistance at 1169.99 (Aug 25 high), above which the prices could have a go at a major hurdle at 1183 (Oct 28 high). On the other hand, a break below hourly 50-MA at 1144.51 could see prices drop to 1136.00 (61.8% of Oct high-Dec low).

Source: FXstreet