Gold regains with all eyes of the US NFP

Fundamental News and Triggers

  • Gold prices reached fresh two-week highs above $2500 ahead of the NFP report release today. Yesterday’s US jobs data indicated a cooling labour market, leading to anticipation of a 50-bps interest rate cut by the Federal Reserve in the coming two weeks.
  • According to the ADP National Employment Change, private employers recruited fewer people than predicted, adding only 99K in August, significantly below the 145K projected and downwardly revised July statistics.
  • On the other hand, the economy remains resilient, with economic activity in the services sector improving despite forecasts of a recession.
  • The NFP data for August is forecasted to grow from 114K to 163K, while the unemployment rate is expected to fall from 4.3% to 4.2%.

 

Technical Triggers

  • Gold faces a major upward hurdle at $2530 (~Rs 72500), indicating the five-month-old ascending channel’s upper border and an all-time high. Sustained trading above this level might lead to the $2600 (~Rs 75000) psychological threshold while strong support is found around $2470 (~Rs 71000).
  • Silver is gradually recovering from very important support of $28 (Rs 82500) and heading towards its resistance zone around $30.5 (Rs 88000).

 

Support and Resistance

 

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