Gold Rockets to $1,870 – Eyes in US Nonfarm Payroll
The gold price dribbles around $1,870, rising to a one-month high during Friday's early Asian session as the NFP-linked caution saps
The gold price dribbles around $1,870, rising to a one-month high during Friday’s early Asian session as the NFP-linked caution saps momentum. The recent mixed news about China and a rebound in US Treasury yields could also put pressure on gold prices.
Nonetheless, the yellow metal GOLD climbed the most in a fortnight the previous day, following the US Dollar Index’s biggest daily drop in two weeks. However, softer US data and uncertainty among Fed policymakers appeared to have triggered the US dollar’s decline and propelled gold prices.
US Nonfarm Payrolls in Highlights
It’s worth noting that the early signal of Friday’s US Nonfarm Payrolls (NFP), namely the US ADP Employment Change, fell to 128K for May, compared to 300K forecast and a downwardly revised 202K previous reading. The Weekly US Initial Jobless Claims, on the other hand, fell to 200K from 210K expected and 211K previously.
Furthermore, nonfarm productivity and unit labor costs improved in Q1 to -7.3 percent and 12.6 percent, respectively, compared to market consensus figures of -7.5 percent and 11.6 percent. Furthermore, US Factory Orders for April fell to 0.3 percent, down from 1.8 percent in March and 0.7 percent predicted.
Elsewhere, Federal Reserve Vice Chair Lael Brainard and Cleveland Fed President Loretta Mester repeated statements indicating a higher likelihood that the Fed will be aggressive in raising interest rates.
Gold Technical Outlook
With a tepid tick, gold buyers applaud a clear upside pause of a five-week-old descending trend line to refresh a one-month high. The upside momentum is also supported by stronger MACD and RSI, implying further advances towards the key $1,875-76 barrier comprising the 50-day and 100-day EMAs.
A clear break above $1,875 will quickly propel the price towards the $1,890 resistance level, including March’s low and the 61.8 percent Fibonacci retracement of the January-March upside. Pullback moves must remain above the previous resistance line to keep gold buyers hopeful, which is now around $1,857.
If the price falls below $1,857, the possibility of dropping towards $1,820 and the $1,800 level cannot be ruled out. Good luck!
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals