Despite some initial highs seen earlier in the week, buying pressure has reversed in the yellow metal for the week.
This caused the safe-haven to go negative on the week following a large sell-off on Wednesday.
The sales seen mid-week were a result of the impressive rally seen in the US dollar. The rally came in response to the ADP employment number which recorded a rise on the prior month.
The reading is a closely watched measure used to gauge the headline NFP reading (due later today).
The market is expecting a strong reading and sentiment has been lifted further by a set of weaker-than-forecast weekly jobless numbers posted yesterday.
Should we see another strong number, the US dollar rally is likely to continue. This will likely keep gold sentiment weighed to the downside.
The strong rally in equities this week has also been a headwind for gold. US indices are seeing firm buying across the week, leading to an outflow of demand for the lower-yielding gold.
Gold Prices Holding on Trend Line Support
Gold prices continue to range within the recent correction from the 2074.77 all-time highs. Price has been underpinned by support at the 1919.92 level, along with the rising trend line. This is keeping the focus on further upside in the near term.
Should we see a break below this level, however, the next support region to watch will be the 1826.71 zone.