Spot gold prices are slightly softer Friday, as prices sit in a tight range ahead of U.S. payrolls data due at 1330GMT. Asian trading hours saw very little movement, before prices began to firm up after the European cash equity openings. Spot gold traded up to an intra-day high of $1763.15 with prices now paring back to trade $1757.18, down $2.3 on the session. The Relative Strength Index on spot gold continues to trade above a reading of 70, with prices currently showing a reading of 72.63 suggesting that the underlying market may be overbought. Traders will be watching the U.S. non-farm payrolls report closely, where a high reading may see spot gold extend its recent gains and possibly challenge the $1802.93 area, the high posted on 8th Nov last year. Bulls will be encouraged as spot gold has managed to sustain its upwards momentum, after prices broke through their daily trend line on 23rd Jan. The 100-day simple moving average should provide adequate support if prices became subject of any steep correction, with additional gains seen if prices can post a convincing close above $1802.
EasyForexNews Research Team