Gold Is Under Pressure After Non Farm Payrolls Report
Gold pulls back as Treasury yields rise despite the weaker-than-expected Non Farm Payrolls report. The report showed that the U.S. economy added +29,000 jobs in September, compared to analyst consensus of +90,000. Unemployment Rate increased from 4.1% in August to 4.2% in September, while analysts expected that it would remain unchanged at 4.1%.
FedWatch Tool shows that the probability of a rate hike at the meeting in October decreased to 21.6%, but Treasury yields are moving higher. The yield of 2-year Treasuries climbed above the 4.84% level, while the yield of 10-year Treasuries moved towards 5.30%. Rising Treasury yields put material pressure on gold markets today.
U.S. dollar is losing some ground against a broad basket of currencies in a volatile trading session. However, the American currency managed to rebound from session lows, supported by higher Treasury yields. As a result, dollar’s dynamics were neutral for gold markets today.
Gold failed to settle above the $4200 level and pulled back below the support at $4160 – $4180. In case gold stays below the $4160 level, it will head towards the next support, which is located in the $4000 – $4020 range.
On the upside, a move above the $4200 level will push gold towards the resistance level at $4300 – $4320.
Silver Tests The $60.00 Level
Silver pulls back as gold/silver ratio climbed above the 68.50 level. In case gold/silver ratio moves above the 69.00 level, it will head towards the psychologically important 70.00 level, which will be bearish for silver.
Silver declined below the support at $61.00 – $62.00 and is trying to settle below the $60.00 level. In case silver settles below $60.00, it will head towards the next support at $56.00 – $57.00.
On the upside, silver needs to climb back above $62.00 to have a chance to gain upside momentum in the near term. In this case, silver will move towards the 50 MA at $64.02. A move above the 50 MA will open the way to the test of the resistance at $65.00 – $66.00.
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See all Gold forecastsPlatinum Retreats As Pullback Continues
Platinum is losing ground amid broad pullback in precious metals. Palladium markets are down by -1.8%, which is bearish for platinum.
Oil prices rebounded from session lows, putting additional pressure on platinum. Traders ignored the release of diesel from European reserves and focused on rising risks of escalation in the Middle East. High oil prices are bearish for platinum as they hurt global economy and may reduce demand for the metal.
From the technical point of view, platinum attempts to settle below the support at $1700 – $1720. If platinum settles below the $1700 level, it will head towards the next support at $1600 – $1620. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the upside, a move above $1720 will push platinum towards the 50 MA at $1756. In case platinum manages to settle above the 50 MA, it will head towards the resistance at $1780 – $1800.
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