Gold is sitting around $1,718-19 levels currently
The break higher overnight came on the back of a wave of dollar weakness, as Treasury yields also slumped amid Fed fund futures moving to (mildly) price in negative rates for next year.
From a technical standpoint, that saw gold buyers break above the 200-hour MA (blue line) after a several days of trying and they ran with the break - asserting a more bullish bias.
But the upside run stalled at the 30 April high as well as the 23.6 retracement level @ $1,720.46. Those are the key levels to watch for now before gold buyers look towards the trendline resistance at around $1,727.
It is all about the waiting until the US non-farm payrolls now before the market gets on with the groove before the end of the week. Should this negative rate chatter gather pace in the coming sessions, it could be the right springboard for gold to go jumping higher.
Key resistance is still seen from the $1,739 level before the year's high is met at $1,747.36. I reckon a firm break above the latter will trigger stops on a quick run higher in gold. But again, buyers need some kick in the back to really get going on that front.
At least for now, the near-term bias is keeping more bullish and the key hourly moving averages will once again be where sellers need to try and target first before having a bigger say on any move back lower.
