Oil in choppy waters, gold awaits nonfarm payrolls

Choppy trading remains in oil

Oil has pared earlier losses but remains lower on the day as we near the end of the trading week. We’ve basically just experienced last week but in reverse, in keeping with how oil markets have traded since early December.

Choppy but ultimately range-bound action has been evident throughout that period and while traders will have an eye on the range lows – which have been gradually rising – there’s currently little to suggest we’re about to see a major breakout in either direction. We’ll need to see more concrete evidence that either the global economy is facing dire straits or China’s rebound is going to far exceed expectations.

Jobs report key for gold

Gold is tentatively higher ahead of the jobs report, potentially seeing some safe-haven flows while capitalizing on a slightly softer dollar. Ultimately it’s all about that jobs report though, most notably wage data but also the NFP number after the January report blew everyone away.

Key support and resistance levels remain unchanged, with $1,780-$1,800 below being key and $1,860 above representing the first test of resistance. A cooler report could see that come under pressure, although it would have to be significantly better to ease concerns amid a more hawkish Powell earlier this week.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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