The precious yellow metal covered further ground on Friday after clearing the $1,608, reaches the fields of $1,620-26, after inking an intraday high of $1,626 before its mild retreat.
Traders were kept on the edge of their seats on Friday after a gloomy U.S. nonfarm payrolls data magnified the economic toll from the coronavirus. However, a stronger greenback capped the precious metal advance, as the US Dollar breaks back above 100.00 to the index.
The U.S. Labor Department reported on Friday that U.S. non-farm payrolls decreased by -701,000 jobs in March.
The payrolls decline was the most significant monthly decline since March 2009, the worst month for job losses during the last recession.
The unemployment rate for March crushed the 3.8% forecast and climbed to 4.4% from 3.5% in February, the most substantial one-month increase in the rate since January 1975.
While the U.S. job number was worse than expected, it completely understates the number of job losses experienced in the U.S. in the last 2-weeks.
Given that the report only includes data through March 14, missing two weeks in which 10 million Americans filed for unemployment, many had thought the report wouldn’t be so bad.
Looking ahead, all eyes turn to this Thursday’s initial jobless claims report, with consensus economists expecting to see 5 million new unemployment claims filed for the week ended April 4.
Looking back to the technical aspect, any renewed upside challenge would likely experience a lack of demand near the $1,626 resistance.
However, a breach may initiate a boost to the critical level capping from $1,648. Reassess from there.
The support is located at $1,600-04, with any slippage towards the bullish foundations viewed from $1,550-70 will remain heavily guarded by the bulls.
From the continuous high market volatility, trading will remain at “high risk” due to the uncertainty of the market conditions.
Therefore, continue to monitor or adjusted stop-losses accordingly.