© Dukascopy Bank SA
"While the U.S. economy added fewer-than-expected jobs in August, one was still left with the impression following Friday's non-farm payrolls report that the labour market is in pretty good health."
- ANZ (based on CNBC)
Pair's Outlook
Gold was swinging between gains and losses on Friday. However, declining US unemployment rate put pressure on the precious metal and raised hopes the Fed will hike rates in September. As a result, XAU/USD fell marginally below the 55-day SMA and closed the trading session at 1,121. The bearish scenario is highly likely this week, as suggested by weekly technical indicators. We see some additional negative momentum to be built by the cluster of resistances around 1,130 as bears are aiming at the Aug 18 low of 1,109, followed by the major level at 1,100.
Traders' Sentiment
SWFX sentiment with respect to gold stayed unchanged in the past 72 hours, as bulls and bears are still holding 53% and 47% of all open positions, respectively.
© Dukascopy Bank SA