Spot Gold trades in red on Friday and pulls back from fresh nearly four-month high at $1326, posted on Thursday.
Stronger dollar in early Friday’s trading pushed yellow metal’s price lower, ahead of key release US NFP data, due later today.
Spot Gold is on track for the fourth straight weekly bullish close, on recovery rally from $1326 trough, with weekly close above cracked $1311 barrier (Fibo 61.8% of $1357/$1236 descend) to generate bullish signal.
Strong bullish setup of daily studies is overshadowed by overbought conditions which threat of corrective action, as gold held in uninterrupted rally for four weeks and profit-taking could be seen as likely scenario.
US jobs data could be a catalyst for correction on upbeat release. Break below strong supports at $1300 zone is needed to generate fresh bearish signal.
Otherwise, consolidation above $1300 support could signal fresh upside attempts towards next target at $1328 (Fibo 76.4% of $1357/$1236 descend).
Res: 1323, 1326, 1328, 1334
Sup: 1316, 1311, 1300, 1295
