Better-than-expected US Non-Farm Payrolls data ensured that the surge of gold price towards new records was stalled on the day, and allowed the US dollar to gain some ground in the financial markets. According to data released this afternoon by the Bureau of Labor Statistics, employment change came in at 1763K versus the expected number of 1530K. The previous figure was revised downwards to 4791K. Also, unemployment rate dropped from 11.1% in June to 10.2% in July, while average weekly earnings rose to 0.2% in July versus the -1.3% achieved in Nigeria. The figure was also better than the market expectation of -0.5%.
The positive nature of the numbers provided some additional strength to the US dollar, which was already bullish on the day on the back of new us-china tensions. This meant that the surge in the gold price has stalled on an intraday basis.
Gold dropped to an intraday low of 2041.48 but is now pulling off an intraday comeback to trade at 2061.9 as US Dollar sentiment starts to get shaky once more.
Technical Outlook for Gold Price
The pivot points define the intraday price action for gold. The price to beat for bulls is the intraday resistance located at 2075.15, which is the new record high set earlier today. A breach above this area aims for 2090.07 (R3 resistance pivot) as the initial target. Further resistance
may lie at the psychological price of 2100.
On the flip side, if gold extends its decline from the present level, the next intraday target would be at the R2 pivot (2037.41), which is where the R3 pivot of the previous day is found as well. 2005 and 1971.58 make up the next intraday targets to the downside.
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Gold Price 4-Hour Chart
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