In the early morning trade, gold has pulled back slightly off its overnight highs because of a blowout jobs number of 128K after expectations of only 85K. Furthermore, African-American unemployment has hit another record low of 5.4% along with a three-month average of 176K jobs added to the U.S.-this is great news that we should ALL be celebrating! Remember, we hit these blowout numbers even though the GM strike of 303,000 people was going on and an ongoing trade war with China. The numbers don’t lie-America Rocks! December gold has pulled back slightly off today’s news but remains technically strong and with the announcement yesterday that the Democrats are proceeding with the impeachment of our President. Again, even though we had a great jobs number this morning, I think with the ongoing trade war with China and this impeachment that the bulls might keep gold above $1,500 an ounce.
If we look at December gold, you’ll clearly see that yesterday it broke out of the symmetrical triangle pattern and is trading above all its major moving averages, which should be a very bullish sign for the shiny one. Furthermore, it leaves gold open now to trade back to contracts highs of $1,566 an ounce made back in early September. I highlighted these levels below on my RJO Futures Pro daily December gold chart.