Gold rejects 1180 handle, fails to seduce bulls after mixed US data

Gold, once again, fails to hold gains in the short-term as it rejects the 1180 handle. 

As a safe-haven, the metal becomes attractive to investors only to hedge risk exposure. However, bulls were not seduced nor received suffice evidence to rush into new long positions. Today’s NFP results, although below consensus, still delivered a strong overall picture for the US labor market. 

US economy adds 156,000 jobs in December - NFP

Gold Technical Levels to Watch

At the time of writing, Gold bounces around its 50 SM (H1 Chart) where it has found support. Furthermore, a close and open below this zone will suggest further downside towards the 200 SMA around the 1150 handle. Over the last 36 hours, the metal upside potential has been capped at the 1180 resistance level. 

However, there is some hope for those never tired gold bugs, as the Stochastic (5,3,3) readings indicate short-term breathing which open doors for bulls to make a comeback and retake control over the asset.