Gold Picks Up Pace After U.S. Data
2022.06.02 19:10
Gold prices are rising for the second day in a row on Thursday, with the spot XAU/USD climbing more than 1% and reaching a nine-day high of $1,869 following the release of weaker-than-expected U.S. employment data.
ADP data showed that the U.S. economy added 128,000 new private jobs in May, missing by far expectations of a 300,000 gain. This figure is particularly concerning ahead of the nonfarm payrolls report to be published on Friday. The official employment report is expected to show the economy added 325,000 in May.
The yellow metal accelerated to the upside after the report, extending its recovery from a two-week low of $1,828, but so far, it has failed to break above last week’s high at the $1,870 area.
At the same time, gold benefited from the pullback of U.S. Treasury yields – which could be considered the metal’s cost of opportunity. The yield on the United States 10-Year note has retreated to 2.89% after three consecutive daily advances.
XAU/USD daily chart.
From a technical perspective, the XAU/USD short-term perspective is tilted to the upside, as the RSI gains slope and crosses over its midline, while the MACD points to growing buying interest.
On the upside, gold needs to decisively break above the $1,870 area to gain further bullish momentum and move towards the 100-day SMA at $1,890 to hit the $1,900 mark.
On the other hand, immediate support is given by the 20- and the 200-day SMA, which converges at the $1,840-45 area, followed by the $1,820 zone and then the $1,800 psychological level.
