Gold Intraday: The Day After NFP
George Lam May 10, 2020 10:20 PM
Spot gold was down 0.8% after a better-than-expected nonfarm payrolls report on Friday, though investors and policy makers are still cautious that whether the worst is yet to come...
Last Friday, the U.S. nonfarm payrolls showed that the economy shed 20.50 million jobs in April and jobless rate jumped to 14.7%, though these figures were better than dismal expectations. Spot gold was down 0.8%, while the three major U.S. indices rallied nearly 2.0%.
Nevertheless, investors and policy makers are still cautious that whether the worst is yet to come. Before we see a more prolonged improvement in data, gold price is likely to be supported by high level of uncertainty and loose monetary policy.
From a technical point of view, spot gold remains on the upside despite a modest pull-back as shown on the 1-hour chart. It has rebounded after retreating to a previously broken bearish trend line, which may now act as a support. Bullish investors might consider $1,697 as the nearest intraday support, with gold likely to test its resistance at $1,723 and $1,735 in extension. In an alternative scenario, losing $1,697 would suggest that gold may retreat further to the next support at $1,685.
Source: TradingView, Gain Capital
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