Gold Buyers Sighting US Nonfarm Payrolls For Next Move

Gold Buyers Sighting US Nonfarm Payrolls For Next Move

Key Highlights            

  • Gold prices gained vs the US Dollar recently, and traded above the $1250 level.
  • The price also broke a major resistance area near $1260, which may now act as a support if Gold moves down from the current levels.
  • On Friday, in the US, the nonfarm payrolls figure will be released by the US Department of Labor, which is forecasted to post a reading of 200K in April 2016.
  • The US Unemployment Rate is expected to remain stable at 5% in April 2016.

Gold Price Technical Analysis

Gold price after forming a bottom near $1200 started to trade higher Vs the US Dollar. During the upside move, the price managed to break an important resistance area near $1260. Moreover, the price is now trading well above the 200 and 100 simple moving average on the 4-hours chart, which is a bullish sign.

Gold

There is a bullish trend line formed on the 4-hours chart, which acted as a support earlier, and if the price moves down from the current levels, then it may find bids near it.

On the upside, a crucial resistance lies at $1300, which acted as a hurdle for buyers once and it would be interesting to see whether they can manage to clear it in the second attempt or not. A lot depends on the incoming data from the US this week.

US Nonfarm Payrolls

This week on Friday, the US will witness a major economic nonfarm payrolls, which presents the number of new jobs created during the previous month, in all non-agricultural business will be published by the US Department of Labor. The market and analysts believe there will be a rise of 200K in April 2016, compared with the last reading of 215K.

The US Unemployment Rate is expected to remain stable at 5% in April 2016. If the jobs continue to impress, then Gold prices may come under a bearish pressure, as for the fed the labor market growth is a main agenda for interest rates hike.

Overall, the recent price action in GOLD was impressive, and if the bulls continue to remain in control, then there are chances of more gains in the near term.

Today’s Events

In the US today, the Initial Jobless Claims will be released by the US Department of Labor, which is forecasted to increase from 257K to 260K.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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