Yesterday we said: “Gold failed for the second time to break above 1188$-1190$ minor resistance zone from a price action prospective this failed breakout attempt is slightly bearish and therefore we can expect more pressure on the precious metal for the day. This current move shows us that the 1180$ strong support zone (highlighted in yellow on the chart) is clearly under attack and any break lower would trigger a sustained directional move to 1170$, the lower bound of this support zone to keep under radar for the day is found at 1178$. To the upside, 1188$ is clearly the resistance level to keep under radar for the day. Our bias for the day is bearish.”

Gold climbed to the higher bound of its 1180$-1212$ range yesterday helped by poor US data release and technically the breakout of 1188$ minor resistance triggered stop losses and therefore accelerated the bullish move. The precious metal is now back to 1200$ key level, in case this level should hold we could see more upside potential for the day, next market drivers for gold will come this afternoon with US employment figures release. Our bias for the day is neutral.