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- Spot gold prices increased from $ 1,424 to $ 1,386.
- $ 1,375 protects the 20-day moving average.
Gold prices range from $ 1,392 to $ 1,401, down -0.22% at the start of the week, but were down sharply on Friday after a strong non-farm payroll report. Declining expectations for a Fed interest rate cut in July significantly boosted US yields and the dollar. The gold spot gold price fell from $ 1,424 to $ 1,386, shedding 1.14% in cash and the previous month's futures contract dropped $ 20.80, or 1.5 %, to settle at 1,400.10 oz after closing at $ 1,420.90 on Wednesday at Comex. the highest for a most active contract since May 14th.
The surprise in payroll has benefited the dollar. The 10-year rate rallied to close up + 4.66% and equities ended lower. The DXY rose 0.47%, falling within the range of 96.72 / 97.44. According to data from the Ministry of Labor, the unemployment rate rose to 3.7%, up only 0.1% from the record level of the last five years of May, and the labor force participation rate was reached 62.9%.
In the coming week, Fed Chairman Powell will be very busy speaking to Congress for two days. It should reaffirm that the Fed is ready to support the current economic expansion and that the report on employment is encouraging. . Then we also have the FOMC minutes to clarify what would prompt the Fed to provide this support. "Global uncertainties and controlled inflation should remain major concerns for the Fed," said TD Securities analysts.
Levels of gold
1381 and the 20-day moving average before 1375 guards the 20-day moving average ahead of a 50% retracement from the April low to the high end of June around 1350. On the other hand, 1440 is the main resistance to the pursuit from May 2012, lower to 1527.
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