Ella 
Gold took a short-term cushion around $1,943, but leaned further lower.
The U.S. dollar index is expected to rise above 104.00, as the probability of further interest rate hikes by the Federal Reserve is extremely high.
Gold sold off sharply after adjusting to the 200EMA around $1,977.32.
The price of gold (gold/dollar) found intermediate support around $1943 in early European trading. The downtrend in the precious metal has been intervened in the short-term, however, further losses are likely as the Federal Reserve (FED) is expected to raise interest rates further to curb stubborn US inflation.
The S&P 500 pared some losses in Asia, pointing to a recovery in risk appetite. US stocks are still bullish, even if non-farm payrolls are better than expected.
The U.S. dollar index continues to consolidate around 104.00 after a big rally earlier. The U.S. dollar index appears to be gathering momentum for further gains. The rising probability of further interest rate hikes by the Federal Reserve has also injected fresh blood into U.S. bond yields. The 10-year yield rose strongly above 3.74%.
Investors are turning their attention to the release of U.S. ISM services PMI data after U.S. factory activity contracted for the seventh time in a row. The U.S. manufacturing PMI has been unable to reclaim the 50.0 threshold for the past seven months, however, the services PMI has fared significantly better than manufacturing. According to preliminary reports, the U.S. services PMI was seen falling to 51.5 from 51.9 previously reported. A new orders index showing forward-looking demand was seen rising to 56.5 from 56.1 previously reported.
