The yellow metal fell $17 at the previous session. As we recommended in yesterday's articles, the selling pressure will appear only below $1,266.00. Tthe metal made a low at $1,266.00 and bounced from there. Ahead of the Chinese Lunar New year on February 19th, we can expect Chinese consumers will acquire gold. The focus has shifted to tomorrow's ADP Non-farm employment data. The metal has weekly resistance at $1,303.75, above it $1,309.00 will act as another resistance level. The monthly support exists at $1,270.00 levels or 20Msma. The prices are making lower tops for 9 days in a row. Currently, the trading pattern is framed between $1,286.00 and $1,266.00. Either side breakout will provide more room to trade. The panic will be triggered below $1,249.50.
Resistance: $1,286.00; $1,297.50; $1,303.00.
Support: $1,272.90; $1,270.00; $1,266.00.
At the Asian session, the metal is trading at $1,273.00. The support exists at $1,272.90 which is the 4-hour support. We can expect weakness below that level. The next support exists at $1,270.00 and $1,266.00. Risky traders can buy above $1,276.00 with the targets at $1,280.00, $1,282.00, and $1,284.00.
The material has been provided by InstaForex Company - www.instaforex.com