- US employment report for August is not far from expectations.
- The dollar loses strength due to a decline in Treasury bond yields.
- Gold adds further gains after the data, and extends rebound from critical support.
Gold rose as high as $1,715 on US jobs data, hitting a two-day high. It then pulled back and is trading around $1709. The dollar was left weak, with a limited fall, after the figures.
After the NFP, the calm is cut
The US jobs report showed mixed numbers. Nonfarm payrolls rose by 315,000 above the 300,000 expected. The unemployment rate went from 3.5% to 3.7%, although accompanying an increase in the labor participation rate. Volatility in financial markets jumped after the US data.
Treasury yields are falling which supports gold’s rally on Friday. Stocks in the US rise supporting the demand for raw materials.
The Prayed advances on Friday and cuts weekly losses. On Thursday the price of the yellow metal hit a one-month low of $1,688, before starting the rebound. XAUUSD’s gain on Friday is the biggest since the beginning of the month.
The short-term trend remains down, although gold is bouncing from close to strong long-term support at the $1,675 level, where the 2021 and 2021 lows are.
Technical levels
Source: Fx Street
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