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Hugo in HTO Trading,

GOLD: Inside day and waiting for the nonfarm payrolls

Gold has been rallying on bad news as it pushes back expectations to a rate hike later in the future and falling on positive economic news as odds are raised for a June rate hike.

More volatility is on the horizon as the biggest report of the month is still to come as Bureau of Labor Statistics will release nonfarm payrolls data today. However, gold markets are closed in recognition of Good Friday and investors will have to wait until at least Sunday 23h GMT, when electronic markets open to react to the numbers.

Gold initially fell but found enough buying pressure on the 10-day moving average to turn around and close still in the red near the open of the day. The precious metal fell 0.88% last month and is in potential phase change from bearish to warning. The Stochastic is showing bullish momentum and is above the mid 50 line.

Expecting an upward move to a daily key level at 1,219.80 on a break above previous day high at 1,207.25 (scenario 1) or a break below previous day low could throw the yellow metal to a daily key level at 1,182.47 (scenario 2).