Gold price (XAU/USD) has spiked 0.92% on the day after the lacklustre Non-farm Payrolls report that showed a modest rise in employment change and a lower unemployment rate.
The NFP Employment Change came in at 559K, which was less than the consensus figure of 645K. Also, the unemployment date dropped from 6.1% to 5.8%, which beat the market projection of 5.9%.
The NFP result of today is considered to be lackluster when compared with the ADP Employment Change of yesterday, which showed that the private sector hired close to a million new jobs.
Consequently, the gold price is up 0.9% and now trades at 1887.11.
Technical Levels to Watch
The day’s bounce emanated from the 1860.77 support line. So far, there has been an intraday violation of the 1881.68 resistance. A break of this area opens the door towards 1900.95, with 1917.00 and 1930.8 serving as additional targets to the north.
On the other hand, a rejection at 1881.68 allows bears to retest the 1860.77 support. A decline from here targets the 1828/1840.00 price wall. 1815.20 and 1800.00 also lie in wait if the price wall gives way.