Gold Spot / U.S. Dollar
Long
Updated

Nonfarm Disappoints, Gold Surges Strongly!

1 341
Hello traders. Yesterday, gold staged an impressive breakout, climbing more than 400 pips. This was a clear market reaction to weak U.S. economic data, putting pressure on the dollar and driving strong safe-haven flows into gold.

The Nonfarm Employment Change report showed only 22K new jobs, compared to a forecast of 75K and a previous reading of 79K. This figure, far below expectations, immediately weighed on the U.S. dollar.

In addition, the unemployment rate rose from 4.2% to 4.3%, further strengthening expectations that the Federal Reserve will be forced to cut interest rates sooner. With a weaker USD and growing prospects of monetary easing, gold – as a safe-haven asset – quickly benefited, becoming the preferred choice for investors.

From a technical perspective, the daily chart continues to hold within a clear ascending channel. Price has already moved above the immediate support at 3,536 and is now heading toward the psychological resistance at 3,700. Both EMA34 and EMA89 are pointing upward, confirming that the primary trend remains bullish. Recent pullbacks appear to be mere pauses rather than any structural break in the uptrend.

All in all, with disappointing U.S. labor data and monetary policy leaning toward easing, gold has likely entered a new bullish wave.
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