Gold Prices Take a Hit On Better than Expected Non-Farm Payrolls (NFP)

Five minutes after the release of this month’s NFP report, Gold prices had reverted back towards the middle of the $1473.68 to $1518.41 range. Gold prices (XAUUSD), now look like they will spend more time in the before mentioned range, as the Non-Farm Payroll showed that the US economy added 128,000 new jobs from 180,000 in the prior month, and higher than the 89,000 projected by economists. It is also important to note the high revision, from 136K to 180K.

Technically, gold prices are trading within the rectangle pattern of $1473.68 to $1518.41, and until they leave this range, the price will continue to oscillate without a strong trend. In the very short-term price might reach the 50% correction level of this week’s price interval at $1498, followed by 61.8% correction level at $1493.

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Bullish traders will probably wait for a break to the rectangle pattern high at $1518.41 and likewise the October 25 high before turning bullish, in line with the longer-term trend. On a break to $1518.41, gold prices could reach the rectangle pattern target at $1552.Download our latest quarterly market outlook for our longer-term trade ideas.

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