Gold – highest yearly closing ahead of US non-farm payrolls

Gold prices clocked a yearly high on daily closing basis on Thursday ahead of the US non-farm payrolls release, which is expected to show jobs growth slowed sharply from the super strong July figure.

Comatose in Asia

Prices are trading in the sideways manner around $1368 levels after having closed higher at $1366.45 in the previous session. Metal traders refrain from making big bets ahead of the all important non-farm payrolls release, although there is little reason for fear a sell-off after BOE’s big stimulus surprise.

Nevertheless, some amount of caution usually seeps into markets ahead of payrolls release, given the data could single handedly make or break Fed rate hike bets.

Gold Technical Levels

The immediate hurdle is seen at $1375 (July high), which is followed by a major resistance at $1380 (38.2% of 2011 high – 2015 low). A violation there on daily closing basis could result in capitulation of shorts and open doors for a move above $1400 levels. On the other hand, a breakdown of support at $1358 (Brexit day high) could yield $1346.60 (Aug 2 low), under which losses could be extended to $$1335 (July 8 low).