Spot gold bulls step in after the U.S. Fed rate hike – Eyes look to the U.S. job numbers this Friday

May 5, 2022 - 3 weeks ago
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On Wednesday, the bulls rushed in greater numbers for precious yellow metal after the U.S. Federal Reserve delivered a widely expected interest-rate hike.

U.S. Fed Chair Jerome Powell said 50-basis point increases “should be on the table at the next couple of meetings,” but added that a three-quarter point rise increase “is not something the committee is actively considering.”

Meanwhile, the US Dollar Index (US DXY), which tracks the greenback against a basket of its peers, tumbled by -0.96% from 103.50 to 102.52.

This Friday is the main event, the Non-Farm Payrolls when the Bureau of Labor Statistics is expected to show a growth of 400,000 jobs added for April and a decline in the unemployment rate to 3.5%.

Based on the technical assessment, the Relative Strength Index (RSI) indicator, 3-daily ‘lookback’ is positive, while the Moving Average Convergence Divergence (MACD) supports a negative signal.

The rebound/recovery now exposes the region of $1,910-14.

Reassess from there as a rejection would erase the recent gains and reinstate the downside target at $1,848-52.

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