Gold remains stuck in narrow range

Volatility has been lower recently and gold has been consolidating over the previous days. On Friday, the metal was trading half a percent lower on the day, hovering at around 1,705 USD.

However, volatility could pick up later in the day as the May’s US labor market report is due.

The intraday support for gold could be located near the psychological level of 1,700 USD, while the medium-term support is seen in the 1,670-1,680 USD area, where previous highs and lows are converged.

If gold declines below this level, larger stop-losses could be hit and the medium-term outlook will most likely change to bearish.

Alternatively, the resistance for bullion is at the current cycle highs, which are around 1,750 USD. From the intraday perspective, the first selling area could be located near 1,720 USD.

The greenback is weakening broadly, which could benefit gold further and if today’s data will be bad, we could see another rally in precious metals.
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