On Monday, the safe haven metal gold prices are trading flat around $1,405 due to an unexpected surge in the U.S. jobs report in focus. Last week on Friday, the yellow metal gold prices were bearish around 1,390 as traders remain cautious ahead of an upcoming congressional speech by Federal Reserve Chairman Jerome Powell, which later came up with a bearish bias by signalling no rate cuts in July 2019.
On Monday, the market continues to trade the weaker dollar sentiment over mixed labour market figures from the United States. Taking a look at economic data, the U.S. labour market report exhibited an unexpected higher surge in the U.S. jobs in June. The U.S. added 224,000 new jobs during the month, moreover, the unemployment rate increased to 3.7% from 3.6% and also wages increased by an unchanged 3.1%.
With this kind of surge in NFP data, the expectations for the interest rate cuts by the Federal Reserve faded away over sentiments that the U.S. economy is already on the growth path. Anyhow, the NFP is already “Price In” and investors will be looking to price in the disappointing Unemployment Rate, making the dollar weaker.
Gold – Technical Outlook
On the technical side, gold hasn’t made much progress as it continues to trade in a wide trading range of 1,410 – 1,382. The series 20, 25 and 50 periods EMA is likely to keep gold prices below 1,410.
Support and Resistance
Key Trading Level: 1401.49
On the 4 hour timeframe, gold has formed a Doji pattern over 1,390 which is suggesting bullish bias. While the bearish trend can be seen below 1,410 today. Gold prices may continue to trade bullish until 1,437 in case of the bullish breakout at 1,410. Whereas, the breakout of 1,382 may extend bearish rally until 1,356. All the best!