As the US economy continues to perform well - highlighted by the recent jobs report which showed strong wage inflation - and emerging markets remain under pressure, rates and the Dollar will continue to constrain precious metals. A roaring US economy suggests that the Fed will continue with the path of rate hikes and that the greenback will remain attractive.
Gold lost grip on the momentum and failed to stay above the $1200 level. The price is currently testing the purple trend line as shown on the chart with oversold conditions at the door, so now it is great time for Gold to bounce from these levels and retest the $1198 resistance level.
Support: 1198.6 1197.75
Resistance: 1207.8 1214.15