Gold Daily Analysis – October 9, 2017

Gold prices settled higher on Friday and continue to trade higher on Monday morning as the dollar weakened after the disappointing nonfarm payrolls report. But gains were limited as a result of wage growth which rose expectations for higher inflation.

Nonfarm payrolls fell by 33,000 in September due to hurricanes Harvey and Irma. The unemployment rate fell to 4.2% but average hourly earnings rose to 0.5% from the previous month.

Atlanta Fed President Raphael Bostic said at a conference in Austin, Texas: “the US central bank should raise rates again by the end of the year”.

Technical View

Gold prices continue to extend the previous pattern which is the “Falling Wedge Pattern”. Currently, prices are nearby resistance area at $1280.

Last week’s Gold prices have recaptured from the support area which indicates retracement momentum towards 1282 level. A break above and a close of a four-hour candle would turn the trend from negative to positive towards $1303 level.