Gold Prices Fall on Strong NFP

Gold prices fell on Friday and continued to trade weakly during this morning as well as the dollar began to recover all across the board since the release of the NFP. The NFP data came in at a much stronger than expected value of 209K and with the wages data also coming in strongly, it was finally time for the dollar to make its presence felt. It had been trading weakly for the past few weeks due to the weak economic data from the US which had in turn led to doubts on whether there would be a rate hike from the Fed sometime this year. With already 3 hikes out of the way since December, the market was expecting at least one more by the end of the year but with so much of political turbulence in the US and also some weak economic data, it looked as though the Fed would not be in a position to hike rates anytime soon.

Gold Breaks Through Support

But the dollar bulls got a boost on Friday through the strong and important NFP data and now they would be looking forward to more strong data from the US in the coming weeks. Due to this strong data, the gold prices fell through the 1262 region and they trade below the 1260 region as of this writing ad though there has been a slight recovery in the prices, we believe that the support region at 1248 should come under fire pretty soon. For today, there are not much economic events from any part of the world but expect the gold prices to trade weakly for the day.

Oil prices do not seem to be much impacted by the strength of the dollar and they continue to trade in a pretty strong manner through the course of Friday and so far today as well. They trade well clear of the $49 region and seem to be heading towards $50 and further in the short term. The oil prices have shrugged off weak data in the form of a large build up in the inventory from the US and they are back on track as far as their uptrend is concerned.

Silver prices also backed off following the strong NFP report on Friday and they now trade well below the important $16.5 region and this weak trading in the silver prices is likely to continue in the short term as the market comes to terms with the recovery in the dollar.