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Gold drops on upbeat US wages, drop in unemployment rate

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices fell into losses as the USD regained bid tone following an upbeat average weekly earnings and unemployment rate release.

    Drops to $1150/Oz

    Prices fell below USD 1157.23 (76.4% of Oct high-Dec low) and extended losses to trade around USD 1150/Oz levels as dollar demand spiked on account of a drop in the unemployment rate to 4.9%. The average weekly earnings also bettered estimates by printing at 0.5%m/m.

    Both data were enough to overshadow the sharp fall in the main headline payrolls figure. Moreover, the USD index advanced to trade 0.40% higher after a knee jerk reaction to weak NFP.

    Gold Technical Levels

    A break above the immediate resistance at 1157.23 (76.4% of Oct high-Dec low), above which the prices could have a go at a major hurdle at 1169.99 (Aug 25 high). On the other hand, a break below hourly 50-MA at 1144.51 could see prices drop to 1136.00 (61.8% of Oct high-Dec low).
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