The U.S dollar rallied against Gold and on Friday after a strong U.S employment report reinforced expectations for a mid-year rate hike by the Federal Reserve.
The Labor Department reported that the U.S economy added 257K jobs in January, far more than the 234K forecast by economists. Despite of December’s figure been revised up from 252K to 329K.
This week on the economic agenda we have Consumer Price Index in January from the China, one of the world’s largest gold consumer, that is expected to fall from 1.5% to 1.0% and from the U.S is expected the Retail sales in January that are estimated to rise from -0.9% to -0.5%.
Gold fell but found enough buying pressure on the 50-day moving average to stop the fall, closing in the red near the low of the day. The precious metal made a wide range day and closed below the 50-day moving average sifting from accumulation to an unconfirmed recovery phase.
Expecting downward move a daily support at 1,204.70 on a break below the 50-day moving average at 1,227.82 (scenario 1).