- Dollar soars after US non-farm payrolls.
- Metals suffer sharp decline, extending the pullback from highs in weeks.
- Downside pressure persists and Treasury bond yields rise.
Gold lost $25 after the publication of the US employment report. XAUUSD fell to $1764 and then bounced back modestly. It is trading around $1774.
The US jobs report numbers for July beat expectations. Non-farm payrolls rose by 528,000 against the 250,000 market consensus, and June data was revised upwards. The unemployment rate fell to 3.5%.
The data generated a sharp drop in Treasury bonds. The 10-year rate went from 2.70% to 2.80%, and the 30-year rate from 2.98% to 3.05%. At the same time, US stocks turned negative.
After the formal opening of Wall Street, the main indices trimmed losses, although bond yields continued to rise, which continues to put pressure on gold.
The XAUUSD found support for the time being at the $1,765 zone. Below, attention will turn to the $1,755 level, which, if given way, would hurt the bullish outlook for the yellow metal. To the upside, at $1780 some resistance would be expected. Further above the key level is $1790 and a confirmation above it would pave the way for a return above $1800.
Technical levels
Source: Fx Street
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