Gold prices moved lower as the Dollar gained traction in the wake of the stronger than expected U.S. payroll report. Prices hit fresh 4-month lows at 1,207, but rebounded into the close near support at 1,212. Prices are now oversold as the RSI (relative strength index) moved below the oversold trigger level of 30, which could foreshadow a correction.
Jobs Data Beat Expectations
The U.S. jobs report beat estimates with a 222k June payroll rise after 47k in upward revisions, and a 0.5% June surge in hours-worked with a workweek rise to 34.5, after big boosts for both back in April that lifted Q2 averages. There was a 245k civilian job pop with a 361k labor force surge that left a jobless rate rise to 4.36%, and a participation rate rise to 62.8%. There were gains across the bellwether goods sector’s jobs and hours-worked data, as goods sector jobs rose 25k, with gains of 1k for factories, 16k for construction, and 8k for mining, alongside hours-worked gains of 0.2% for both factories and construction, and 0.5% for mining.
This article was originally posted on FX Empire