Gold Surges After US Data
02 September 2022
The bullion rose more than 1% on Friday, jumping above the critical 1,700 threshold again as the USD weakened following US jobs data.
Gold usually jumps after inflation and jobs market data, but the bearish trend tends to start shortly after (speaking about the medium-term outlook).
Mixed US jobs market data
The actual number of payrolls for August was 315,000, down from a downwardly revised 528,000 in July and somewhat higher than the consensus expectation of 298,000. This was the lowest monthly gain since April 2021, taking into account all data adjustments from the previous year.
The unemployment rate came in significantly higher than anticipated, running at 3.7% as opposed to the 3.5% predictions and 3.5% print from the previous month.
Hourly wages increased 0.3% in August, less than predicted and far less than the upwardly revised 0.5% in July. Average hourly wages rose 5.2% annually, less than the 5.3% forecast.
Short-term outlook bullish
Gold seems oversold, likely supporting the current bounce, with the next short-term resistance at around 1,730 USD. If bears do not hold that level, the bounce could continue toward 1,765 USD.
Alternatively, the support is at the psychological level of 1,700 USD before this week's lows of 1,690 USD.