Spot gold ‘knee jerks’ as US Dollar wobbles after disappointing U.S. jobs report

October 11, 2021 - 2 weeks ago
Share on twitter
Share on facebook
Share on linkedin
Share on email

On Friday, the precious yellow metal spiked to a fresh 2 –1/2 week high, following a disappointing U.S. jobs report.

Employment in the United States grew at a slower rate than expected in September, after the release of the Non-Farm Payrolls number missed the forecast of an increase of 490,000 and instead created just 194,000 jobs in September, the Bureau of Labor Statistics (BLS) said.

However, on the positive side, the unemployment rate fell to a much lower point than economists forecast.

At 4.8%, that’s the same level seen in late 2016; August’s jobs report was revised up to 366,000 compared to the initial read of 235,000.

A bleaker Labor picture could stall the U.S. Federal Reserve as it prepares to slow its $120 billion-per-month bond-buying program.

Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator remains to a weak bias, while the Moving Average Convergence Divergence (MACD) remains to a weak positive signal.

Besides mixed technical indicators, the spike on Friday still views the $1,748 as vulnerable and a potential bearish trigger.

If pulled should weaken the bullish foundations. This, in terms, would expose the region of $1,721-33 area before any bullish retaliation.

Meanwhile, continue to monitor the US dollar (US DXY) as a close above 94.40 would be viewed bullish to 95.30-80 region.

Share on twitter
Share on facebook
Share on linkedin
Share on email