Gold extends daily gains, rises above $1315 post-US data
- Private sector employment in the U.S. increases 250K in December.
- Wall Street opens higher on Thursday.
- USD struggles to find demand.
Following yesterday's technical slide, the XAU/USD pair gained traction on Thursday and recently rose above the $1315 mark as the broad-based selling pressure on the greenback remained unchanged despite the upbeat employment figures from the United States. As of writing, the pair was trading at $1316, gaining nearly $3, or 0.22%, on the day.
The ADP on Thursday announced that the private sector employment in the United States increased by 250K on a monthly basis in November and beat the market expectation of 190K. A separate report released by the US Department of Labor showed that the advance figure for seasonally adjusted initial jobless claims rose to 250,000 from 247,000 in the week ending December 30.
The market, however, didn't show a positive reaction and the US Dollar Index stayed confined in a range near its daily low. At the moment, the index is down 0.25% at 91.66.
Meanwhile, major equity indexes in the U.S., which were able to close the previous day at all-time highs, started the day on a positive note with the Dow Jones Industrial Average and the S&P 500 indexes gaining 0.25% and 0.3% respectively at the opening. If the positive mood surrounding the stock markets persists, the precious metal could have a difficult time gaining more value against the buck in the remainder of the day.
Technical levels to consider
The first technical hurdle for the pair could be seen at $1321 (Jan. 2 high) ahead of $1334 (Sep. 14 high) and $1344 (Sep. 5 high). On the downside, supports align at $1300 (psychological level), $1294 (Dec. 29 low) and $1286 (Dec. 28 low).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
