Gold jumps to $1294 after jobs report

By FXStreet Gold prices soared to $1,294 after disappointing US monthly jobs report but has now cooled off a bit to currently trade at $1289.

The US Labor Department reported on Friday that the economy added 160,000 new jobs in April, fewer-than-expected 200,000 jobs and the weakest gain since September. Readings for February and March were also revised down by a combined 19,000 fewer jobs than initially reported. The unemployment rate, however, held steady at 5%. The official data is consistent with weak ADP report released earlier this week, indicating lackluster US labor market growth.

Sluggishness in labor market now reaffirms that the Fed is more likely to adopt a gradual approach towards normalizing its monetary policy, which would push the greenback lower and would be bullish for gold prices. Gold erased most of its weekly losses and a positive weekly close, preferably above $1300 handle, would continue to boost the yellow metal higher in the near-term.

Technical levels to watch

From current levels, $1296-97 area, closely followed by $1300-03 weekly high level, are immediate resistance levels to clear. A decisive break through above $1300 handle would now open room for further near-term appreciating move towards its next major resistance near $1325-28 region.

Meanwhile, $1280 level …read more

Source:: FX Street