Gold is trading in the red on the Daily chart and seems determined to reach and retest a dynamic support again. It remains to see what will really happen in the upcoming hours and where the rate will close the week. You should know that the rate will be driven by the fundamental factors till the end of the day, so you should be careful not to suffer a heavy loss.

The yellow metal remains under some selling pressure on the short term, so will be better to stay away because we don’t have any trading opportunity on the short term.

Gold dropped on the mixed Chinese data, the CPI rose by 2.9%, beating the 2.5% estimate and the 1.5% growth in the former reading period. The New Loans dropped more than expected, from 2900B to 839B, the estimate was 900B, while the M2 Money Supply rose by 8.8%, matching expectations and exceeding the 8.6% estimate.

The yellow metal has managed to rebound and to recover in the last hours as the US data have come in mixed, the Non-Farm Employment Change increased from 239K to 313k in February, beating the 205K estimate, but unfortunately, the Average Hourly Earnings increased only by 0.1%, less versus the 0.2% estimate and versus the 0.3% growth in the former reading period, while the Unemployment Rate remains unchanged at 4.1%, even if the traders have expected to see a drop to 4.0%.

The rate has come back down to test the upper median line (uml) of the major red descending pitchfork, but failed to stay below it. The US data have forced the rate to come back higher, but is premature t talk about a significant increase at this moment because is still under pressure after the two false breakouts above the WL1 of the ascending pitchfork.