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.

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