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6 Feb 2015
Gold falls below USD 1250 post strong NFP report
FXStreet (Mumbai) - Gold prices fell below USD 1250/Oz levels after a better-than-expected jobs report in the US coupled with upward revisions in the previous month’s jobs report strengthened the US dollar across the board.
Interest rate hike expectations in the US hurt Gold prices
A strong Non-farm payrolls (NFP) report pushed up the Treasury yields in the US. Moreover, the 2-year yield, a barometer of short-term interest rate expectations, shot up 8 basis points to 0.6%. This indicates the markets could be pricing-in an early interest rate hike in the US after the stellar jobs report, which showed the US economy added 257 K jobs in January. The NFP print for December was revised higher to 329K from the initial estimate of 252K. Meanwhile, the unemployment rate ticked higher to 5.7%, accompanied by a rise in the labor force participation rate.
The strong data pushed the US dollar higher across the board. The USD index currently trades 0.65% higher at 94.30 levels.
Gold Technical Levels
The metal currently trades 1.255 lower at USD 1246.960/Oz levels. The immediate support is seen at 1246.46 (200-DMA), under which losses could be extended to 1232.24 (50-DMA). Meanwhile, resistance is located at 1251.9 and 1256.9 levels.
Interest rate hike expectations in the US hurt Gold prices
A strong Non-farm payrolls (NFP) report pushed up the Treasury yields in the US. Moreover, the 2-year yield, a barometer of short-term interest rate expectations, shot up 8 basis points to 0.6%. This indicates the markets could be pricing-in an early interest rate hike in the US after the stellar jobs report, which showed the US economy added 257 K jobs in January. The NFP print for December was revised higher to 329K from the initial estimate of 252K. Meanwhile, the unemployment rate ticked higher to 5.7%, accompanied by a rise in the labor force participation rate.
The strong data pushed the US dollar higher across the board. The USD index currently trades 0.65% higher at 94.30 levels.
Gold Technical Levels
The metal currently trades 1.255 lower at USD 1246.960/Oz levels. The immediate support is seen at 1246.46 (200-DMA), under which losses could be extended to 1232.24 (50-DMA). Meanwhile, resistance is located at 1251.9 and 1256.9 levels.