The yellow metal recorded its biggest one-day percentage decline in more than two weeks on Thursday as it retests its yearly lows before bouncing back a bit and trades nearly flat during today's early session ahead of the US employment reports. This comes after the FOMC statement showed a more upbeat assessment of the economic developments and dampened prospects for any rate cut this year, which was seen driving flows away from the non-yielding yellow metal. This coupled with growing optimism over US-China trade negotiations, further fueled by reports that the world's two largest economies may announce a trade deal by next Friday, further weighed on the precious metal's safe-haven status.
As expected, Gold prices continued to edge lower and ended up retesting yearly lows near at the $1266.14 support level before bouncing back above the $1270 level. The price is currently trading near flat around the $1272 level with a bearish momentum who did not get to enter the oversold state even with the biggest one-day percentage decline in two weeks. We will keep focusing on the downside and this time we will be watching the $1261.81 support level.
Support: 1268.81/ 1265.9
Resistance: 1274.06/ 1277.18