- October US employment data beat expectations.
- The dollar loses momentum after the start of the American session due to a fall in Treasury bond yields.
- XAU / USD still without being able to assert about 1800 $.
The XAU / USD fell to $ 1,784 after the employment data was released, but then rebounded to $ 1803, the highest level since October 28.. It is trading around $ 1800, with a slight bullish bias, supported by the movements of the bond market.
Gold’s initial reaction to the employment report was as expected, as the dollar appreciated on all fronts. As the minutes passed, market participants digested the data, analyzing that the increase in payrolls of 531,000, greater than 425,000 does not imply a change in the message given by the Federal Reserve on Wednesday, which led to a setback on Treasury bond yields.
La The 10-year rate on the US title went from 1.54% to 1.48%, reaching the lowest in one month. This was key to the rebound in gold. If yields continue at these levels or lower, the XAU / USD would have a chance to come back and settle above $ 1800. The next resistance is at $ 1810, followed by $ 1820. Higher around $ 1833 is the key resistance that would trigger further raises if it gave way.
In case of not being able to affirm on 1795 $, the gold would lose force. The next support is at $ 1790, followed by the low of the day at $ 1784 and $ 1778.
Technical levels
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