Gold picked up bid ahead of the Non-farm Payrolls showdown this Friday where there will be considerable attention paid following the recent disappointments in the ISM manufacturing data. The US Dollar is under considerable scrutiny while investors weigh as to whether it is a viable safe haven amidst a deteriorating global economic backdrop. Should the data really disappoint, the Federal Reserve is bound to slash rates as well as amend their economic forecasts which in turn would send markets into panic mode and encourage a flight to safety .
As expected, Gold prices continued to recovered from Tuesday's lows surging back above the $1500 handle after printing a low of $1458.98 per ounce. The price is currently trading just below the $1506.02 resistance level as the momentum turns bullish as we can see on the RSI chart. We will keep focusing on the upside as we will be watching the $1515.75 resistance level.
Support: 1494.87/ 1486.98
Resistance: 1506.02/ 1515.75