- US Nonfarm Payrolls increased by 339,000 in May, beating expectations of 190,000.
- The unemployment rate increased more than expected, from 3.4% to 3.7%.
- The dollar gained momentum, yields rose and gold hit new daily lows.
Gold prices fell from the $1,980 area to $1,971 after the release of the official US employment report, which showed an increase in Non-Farm Payrolls above expectations.
The US economy added 339,000 jobs in May, beating the market consensus of 190,000, marking the highest reading in four months. In addition, the April figures were revised upwards, from 253,000 to 294,000. The unemployment rate rose from 3.4% to 3.7%, and labor force participation held at 62.6%.
The dollar initially rallied strongly, reaching new highs against the Euro, British Pound and Japanese Yen, and pared losses against the Canadian Dollar, New Zealand Dollar and Australian Dollar. However, the dollar’s momentum began to moderate.
US yields rallied but then fell back as markets weighed whether the jobs numbers were strong enough to pressure the Federal Reserve for another rate hike. Rising Treasury yields weighed on Gold, which fell as low as $1,971. The yellow metal is currently trading at $1,975 in a volatile post-NFP environment.
To the upside, Gold is facing strong resistance around the $1,980/$85 area. A break to the upside could push prices towards $2,000. Conversely, a drop below $1,970 would weaken the outlook, with the next support being $1,960.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
