Gold rejected again from above $1280

• Spiked to $1284 after the release of US tax reform proposal.
• Again failed to clear $1280 and pulled back. 
• Trump nominated J. Powell for Fed chair. 
• Key event ahead: NFP 

Gold jumped to $1,284.20/oz amid a slide of the US dollar but then pulled back to the $1,275 zone. The yellow metal holds a slightly bullish bias in the short-term but remains unable to break $1,280. 

Earlier today, the US Dollar Index fell to its lowest in a week following the release of proposals to reform the tax code. The decline was short-lived and the greenback recovered most of its losses. During the slide, gold spiked above $1,280 but failed to extend the rally. 

Gold continues to move sideways with a modest bullish bias in the very short-term. The yellow metal remained unaffected by FOMC statement and also it held steady after, as expected, US President Trump nominated Jerome Powell for Fed chair. 

Attention now turns to Friday’s US jobs reports. Payrolls are likely to rise by 312K according to market consensus. Stronger-than-expected numbers could boost the US dollar in the market while a negative surprise could see gold rising. Data to watch also includes the unemployment rate and income. 

XAU/USD levels to watch 

The bullish tone is likely to persist as long as it holds above $1,272; if the metal drops below the next support might be seen at $1,268 and then $1,262 (Oct low). The area around $1,260 is a key support and a break of that level would signal a continuation to the downside. 

Gold again failed to hold on top of $1,280 and also above the 20-day moving average that stands at $1,281. The area around $1,280/83 is becoming a hard barrier to break. A consolidation on top could anticipate a more sustainable recovery ahead. Resistance levels on top might be seen at $1,291 (Oct 20 high) and $1,299 (Sep 22 high).