Technical Analysis Gold for 11/09/15

Gold prices tumbled on Friday as the dollar gained strength in the wake of the better than expected U.S payroll report.  Yields soared across the curve, driving the dollar up nearly 1.25% against a basket of currencies.  Gold dropped through horizontal trend line support at 1,098 which is now seen as resistance.  Prices will now likely test the July low at 1,076.

U.S. nonfarm payrolls surged 271k in October from a revised 137k in September and 153k in August (for a net 12k upward bump. Economists had expected payrolls to rise by 180K. These put the 3-month average at 187k. The unemployment rate dipped to 5.0% from the 5.1% over the prior two months. The labor force rebounded 313k from -350k previously, while household employment climbed 320k from -236k. The participation rate held at 62.4%. Average hourly earnings were up 0.3% from September’s unchanged. The workweek was steady at 34.5.