Gold drops on upbeat US wages, drop in unemployment rate

By FXStreet 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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Source:: FX Street