Gold Price Analysis: XAU/USD remains depressed near multi-month lows on stellar NFP


  • Sustained USD buying exerted some pressure on gold during the early North American session.
  • Strong NFP report provided an additional lift to the greenback and the US Treasury bond yields.
  • A softer risk tone extended some support to the safe-haven XAU/USD and helped limit losses.

Gold edge lower during the early North American session and dropped to fresh nine-month lows, below the $1690 level in reaction to an upbeat US jobs report.

The headline NFP print showed that the US economy added 37K new jobs in February, surpassing consensus estimates by a big margin. Adding to this, the previous month's reading was also revised higher to 166K from 49K reported earlier and the unemployment rate edged lower to 6.2% from 6.3% previous.

The upbeat data provided an additional boost to the already stronger US dollar and prompted some selling around the dollar-denominated commodity. The USD was further supported by a fresh leg up in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.

That said, a sharp pullback in the US equity futures extended some support to the safe-haven XAU/USD and helped limit any further losses. Investors also seemed reluctant to place fresh bearish bets amid oversold conditions on short-term charts, warranting some caution for bearish traders.

Nevertheless, the XAU/USD remains on track to record the third consecutive week of losses and vulnerable to slide further. Hence, any attempted recovery might still be seen as a selling opportunity amid the progress on US President Joe Biden's $1.9 trillion stimulus package.

Technical levels to watch

XAU/USD

Overview
Today last price 1696
Today Daily Change -1.48
Today Daily Change % -0.09
Today daily open 1697.48
 
Trends
Daily SMA20 1784.67
Daily SMA50 1832.77
Daily SMA100 1850.62
Daily SMA200 1860.27
 
Levels
Previous Daily High 1723.27
Previous Daily Low 1690.58
Previous Weekly High 1816.07
Previous Weekly Low 1717.24
Previous Monthly High 1871.9
Previous Monthly Low 1717.24
Daily Fibonacci 38.2% 1703.07
Daily Fibonacci 61.8% 1710.78
Daily Pivot Point S1 1684.28
Daily Pivot Point S2 1671.09
Daily Pivot Point S3 1651.59
Daily Pivot Point R1 1716.97
Daily Pivot Point R2 1736.47
Daily Pivot Point R3 1749.66

 

 

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