Gold Price (XAU/USD) Surges After a Slump in US Jobs Data

Summary:

Gold price action (XAU/USD) posts strong gains after the US public sector adds less jobs than expected in September.

Gold price action on the XAU/USD chart has shot higher after the release of the Non-Farm Payrolls report. Data from the US Bureau of Labor Statistics indicates that the US economy added 194K public-sector jobs (minus agriculture jobs), which was less than the consensus of 490K and the previous number of 366K (an upward revision). The unemployment rate dropped more than expected, coming in at 4.8% (consensus of 5.1% and the previous of 5.2%).

Most of the gains in employment came from the leisure and hospitality industry, professional services, retail trade, and transportation sectors.

This report is the last before the next decision by the US Federal Reserve. The apex bank had indicated that it would start tapering in November, FOMC Chief Jerome Powell saying “a reasonably good employment report” was needed to start the implementation.

The gold price has surged as a result of the data, gaining 1.09% on the day.

Gold Price (XAU/USD) Outlook

The intraday surge has violated the 1763.30 resistance. A penetration close above the 1763.30 resistance opens the door for the bulls to aim for the 1789.49 resistance level. A continued surge above this point allows 1800.00 and 1815.20 into the picture.

On the flip side, 1741.01 and 1719.13 are potential support levels to the south that only become available if the bulls fail to defend the 1763.30 price mark. The mixed data could make room for increased intraday volatility, with some choppiness.