Gold remains bearish post tade balance data from the United States

Gold continues to stay under pressure as US data couldn't disrupt DXY's upward momentum. At the moment Gold is down 0.42% at $1220.47 while DXY is at 101.82, moving closer to its daily high of 101.87.

US trade balance data showed that the deficit jumped to $48.5 billion in January broadly in-line with expectations. March rate hike probability, which is at 86.4% according to the CME Group FedWatch Tool, continues to drive the markets before Friday's critical NFP numbers.

Has the uptrend finally come to an end?

Gold has been on a persistent uptrend since the beginning of the year, correcting losses witnessed after Trump's election victory. However, this trend might finally be degenerating as expectations for a U.S. interest-rate increase as early as March. A report by Reuters highlighted that investors are delaying fresh purchases anticipating a further drop in local prices as the global spot market was pressured by expectations of a hike in interest rates by the U.S. Federal Reserve. On the other hand, geopolitical concerns help the yellow metal limit its losses as a safe-haven for now.

Technical levels to watch

The RSI on the daily graph suggests that the downfall may persist before a technical correction as it continues to move closer to 30 level. A break below $1217 (Feb. 15 low), could push the metal further towards $1212 (Fib. 38.2% of late Dec. - late Feb. uptrend) followed by the major $1200 (psychological level). On the upside, a correction above $1232 (Fib. 23.6%) could open the door towards $1245 (Feb. 8 high) and $1262 (200-DMA).