Key Insights
Gold prices moved lower and continue to trade in a tight range
The dollar rallied, weighing on gold
U.S. Treasury yields moved higher
Gold prices moved higher but remained rangebound. The dollar moved higher and weighed on gold prices. The unemployment rate was stronger than expected.
Nonfarm payrolls rose by 431,000 for the month, while the unemployment rate was 3.6%. Expectations were for payrolls to increase by 490,000 on payrolls and 3.7% for the jobless level. Unemployment, including discouraged workers, was 6.9%, down 0.3 percentage points from the previous month. Average hourly earnings increased 0.4% on the month, in line with expectations. On a 12-month basis, pay rose nearly 5.6%, just above the estimate. The average workweek, which figures into productivity, edged down by 0.1 hours to 34.6 hours.
Technical Analysis
Gold moved lower but remained rangebound. Prices slipped through resistance which is now short-term support at 1,935. Support is seen near the 50-day moving average at 1,898. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.
The medium-term momentum has turned negative. The MACD histogram prints in negative territory with a decelerating trajectory pointing to lower gold prices.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/gold-prices-slip-strong-payroll-162211397.html