Safe Haven Demand Underpins Gold – How to Trade on NFP?
Arslan Butt • 1 min read
On Friday, the precious metal gold prices increased for a fourth consecutive session, supported by safe-haven sentiment following weak economic data. The negative US data heightened worries over economic growth, with focus immediately shifting to labor market reports that could indicate further US interest rate reductions.
As of writing this, gold was up 0.3% at $1,508.64 an ounce, having soared in the prior session to its highest level since September 25 at $1,518.50. The US services area activity diminished to a three-year low in September due to growing worries about tariffs.
US NFP Economic Event – The US NFP (Nonfarm Employment Change) and the unemployment rate will remain under the spotlight. NFP is expected to be slightly positive at 140K vs. 130K during the previous month. While the unemployment rate is likely to stay unchanged at 3.7% and the average hourly earnings are expected to rise by 0.2% vs. 0.2% previously
[[Gold]] – XAU/USD – Weaker Dollar & NFP Figures
Gold hasn’t changed much from yesterday. It’s trading around 1,508 area after completing 100% Fibonacci retracement at 1,500 region.
The weaker dollar has driven gold higher to trade at 1,510 area. Although it placed a high of around 1,519 during the previous session, it came back to close below 1,510 points, the double top resistance level.
Gold – XAU/USD – Trading Levels
Key Trading Level: 1493.1
Bullish engulfing on the 4-hour timeframe is signaling bullish bias among traders. Today, the bullish breakout of 1,512 can lead to gold prices towards 1,519. NFP will remain in focus during the US session.