GOLD is forming a local trading range of 4180-4230, trying to stay above 4200 after yesterday's correction ahead of important US employment and services data
The dollar is weakening amid expectations of a Fed rate cut on December 11. News concerning Powell, namely Fed chair candidate Kevin Hassett (a well-known “dove”), is supporting gold. Geopolitical risks (stagnation in Russia-Ukraine negotiations) are increasing demand for safe-haven assets.
• In focus today: ADP employment data and ISM Services PMI.
• Weak indicators will strengthen bets on Fed policy easing and support gold.
Gold retains its upside potential. The release of US data could either accelerate growth to $4300 or trigger a correction in the event of strong indicators.
Resistance levels: 4230, 4260
Support levels: 4185, 4175
Gold is testing 4200 for strong support. Local trading range 4180 - 4230. A false breakout of support amid a bullish trend and a weak dollar could support gold's growth