Two minutes after the release of the latest US NFP report, gold prices were up five dollars per ounce, as the US labor market proved to be weaker than what economists had projected.
The NFP report showed that the US created 145,000 jobs. vs. the 164,000 jobs projected by economists, also the November reading was revised to 256K from 266K.
The critical US Unemployment rate remained unchanged at 3.5%, which is the lowest unemployment rate since 1969. Annual US wage growth increased by 2.9%, lower than the 3.1% growth seen in November.
Overall, the report was worse than projected, and the weak wage growth is the main reason why the report was bad and gold prices took a leap higher.
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Gold Prices Techincal Outlook following NFP
Just before the release of the NPF report, gold prices where digesting losses following their slide from the 2020 high of $1611.40 as President Trump sent signals that he would like to bring back Iran to the negotiation table instead of using more military force.
The gold price trend remains downwards, and the price would need to break the $1562.40 intraday high created on January 8 to turn higher. On a break to the $1562.40 level, gold prices might reach the next resistance level, the $1611.40 level, followed by the 2020 high at $1611.40.
However, until the $1562.40 intraday high is taken out, the price trend will remain downwards, and the price might drift towards the next significant support level, the October 31 high of 1517.07More content
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