Gold rose to a fresh 6-day high at $1207 earlier in the NA session following the disappointing ADP report which forced the dollar to weaken but failed to preserve its momentum. Today will be a volatile session as employment reports are expected to print positive according to forecasts. If the reports miss the expectations, the pressure on the Dollar will continue to rise sending back the yellow metal higher which looks to be the most likely scenario.
After breaking the channel shown on the chart to the upside, the price headed as expected to the $1207 resistance level but retraced back the $1200 level after being in an overbought state. Gold is expected to pick up some momentum and surge to higher resistance levels. The next are we will be focusing on is the $1211 area but be careful from a possible divergence between the price and the momentum.
Support: 1198.6 1197.75
Resistance: 1207.8 1214.15