Spot gold slips lower ahead of latest U.S. jobs report

October 8, 2021 - 2 weeks ago
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The precious yellow metal’s edged lower on Friday as investors now wait for this Friday’s closely watched U.S. jobs report.

Market participants are hoping the U.S. Non-Farm Payrolls data may give some insight into the possible path of U.S. Fed monetary policy, with the consensus for 490,000 growth and a fall in the unemployment rate from 5.2% to 5.1%.

The Federal Reserve monitors the data.

Meanwhile, Thursday, the weekly jobless claims fell sharply last week as the improved unemployment benefits ended, the Labor Department reported.

New figures showed that 326,000 Americans applied for first-time unemployment benefits in the week ended Oct. 2, down from 364,000 the week prior, further boosting investor sentiment.

Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator slips through the 50-midway point, while the Moving Average Convergence Divergence (MACD) holds a weak positive signal.

As the technical indicator buckles, a close beneath $1,748 would pull the bearish trigger and weaken the bullish foundations, which in terms, would expose the region of $1,721-33 area before any bullish retaliation.

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

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