Non-Farm Payroll Backs Gold

February 3, 2017 8:18AM CST

In the early morning trade, April gold is trading lower at $1,212.4 and yesterday it couldn’t hold the key level of $1223.0 an ounce. However, after this morning’s non-farm payroll number, April gold has so far gotten a slight push up. We added 227,000 jobs last month which was over 50,000 more than predicted, but last months was revised down by 40,000. Therefore, this jobs number basically says we’re still adding jobs, so this can be seen bearish for gold unless we see real signs of inflation and it also backs the Feds decision to gradually raise interest rates throughout 2017.

 

If we take a look at a daily April gold chart, you’ll clearly see the key resistance levels gold needs to break above in order to rally to higher prices. If the investors and traders look at today’s jobs number as bullish for gold and it can push above $1,225.0, then it is not out of the question for gold on momentum to rally up to its 200-day MA, which currently rest at $1274.0 an ounce. Below is a daily April gold chart from our RJO PRO platform.

 

Gold Daily Chart


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