Gold steady ahead of non-farms

Gold has been trading within a tight range this morning, after hitting a three-month high yesterday.

Gold bars
Source: Bloomberg

Gold is trading at $1327, broadly unchanged on the day as traders have looked to the US ADP employment report for a clue as to what the non-farm payrolls figure will be tomorrow. It is a positive sign that gold has pretty much held onto the gains; we are likely to see little volatility on the run up until the jobs report tomorrow. 

Having beaten expectations at 281,000 against 205,000, the US jobs market is clearly strong, but the Federal Reserve are using a broader set of indicators for their monetary policy.

The solid jobs figures from the US could lead to a sell-off in gold; the short term target is the 200-hour moving average of $1318 and the next level down if $1308.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.