Big Day for Gold – Traders Brace for the US Nonfarm Payroll
Arslan Butt • 2 min read
GOLD prices closed at $1475.76 after placing a high of $1480.360 and a low of $1472.820. Overall the trend for gold remained bullish.
At 18:30 GMT, the trade balance from the United States for October came in as -47.2B against the expectations of -48.7B and supported US dollars on Thursday. The jobless claims from the US for this week dropped to 203K against the expectations of 215K and supported US dollars. At 20:00 GMT, the factory orders for October came in as expected at 0.3%.
Despite stronger than expected trade balance & unemployment claims from the United States, gold prices moved higher on Thursday amid uncertainty emerging from mixed messages on US-China trade talks.
The market is expected to remain puzzled as long as US President Donald Trump does not make a clear statement. And that is why the market saw safe-haven demand for gold on Thursday despite the fundamentals against it.
On Thursday, the Chinese Commerce Ministry said that tariffs must be cut to reach an interim trade deal between Washington and Beijing.
This statement came after Trump said that trade talks were going very well, which contrasted with his previous statement, where he suggested that the trade deal with China might have to wait until after US Presidential Elections on November 2020. The upward trend of gold prices was limited on Thursday due to favorable economic readings from the United States.
The US jobless claims dropped to its lowest level since mid-April for last week, and the US trade deficit also dropped to its lowest level in nearly one and half years in October. Both were in favor of the US dollar but failed to make an impression due to increased pressure ahead of the release of average hourly earnings, non-farm employment change, and unemployment rate.
Daily Technical Levels
Key Trading Level: 1476.44
Gold continues to trade bullish, having tested our previously suggested 1,484 level over the safe-haven appeal. On the 4 hour chart, gold is facing support around 1,471 level, and this level can trigger buying in gold to lead its prices towards 1,484 resistance level. Bullish bias still remains strong today. But in any case, the violation of 1,471 can lead gold prices towards 1,466.