Gold prices extended losses to a five-week low on Wednesday as the dollar gathered strength on the prospect of a U.S. interest rate hike. Investors are awaiting February non-farm payrolls data on Friday as a barometer of the U.S. economy after Federal Reserve Chair Janet Yellen said last week the central bank was poised to lift rates provided jobs and inflation data held up. These comments were seen as cementing plans for an increase at the Fed's March 14-15 meeting.
News front, hiring by U.S. private employers surged in February, suggesting that the economy remains on solid ground even as growth appears to have slowed further in the first quarter. The leading indicator fueled expectations for an upbeat non-farm payroll report. Non-farm payrolls will provide final confirmation of a rate hike next week and this could put more pressure on gold.
On technical front, gold is expected to fall below the key support of the 50-day and 100-day moving average. A downturn trajectory is expected to continue on sustaining short selling, with near-term support at $1,200.
Silver slipped 1.3 percent to $17.26 per ounce, after tapping its lowest since Jan. 31 at $17.19. But it managed to hold above the support of the 100-day moving average. The white metal is supposed to whipsaw around the 100-day moving average of $17.20. If that is breached, the next support could be found around $16.50.

 
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