- 56% of all SWFX open positions are long
- Gold opened Monday's session at 1,256.70
- The 1,250 psychological level stopped the metal's fall
- Economic events to watch over the next 24 hours: US banks will be closed in observance of Columbus Day
US employment growth slowed unexpectedly last month, official data revealed on Friday. According to the US Department of Labor, US private companies created 156,000 new jobs in September, while market analysts expected the economy to add 171,000 jobs in the reported month. Meanwhile, the previous month's reading was revised up to 167,000 from the originally reported gain of 151,000. Although the report suggested the economic expansion was still remaining on track, the chances of an interest rate hike at the Federal Reserve's policy meeting next month decreased markedly. However, the odds of a December rate remained quite high, despite the disappointing, despite today's disappointing jobs report. The unemployment rate grew to 5.0% in September, as more Americans re-joined the labor force. Average hourly wages rose to an annualized rate of 2.6% last month, in line with analysts' expectations, whereas the average work week grew 0.1 to 34.4 hours. A broader measure of unemployment, which includes part-time workers and people who stopped searching for jobs, held steady at 9.7% in September. Professional and job services created 67,000, health care and restaurants added 33,000 and 30,000 jobs, respectively, contributing most to the September job growth.
The number of Americans filing for unemployment benefits dropped to its lowest level in 43 years, official figures revealed on Thursday. According to the US Department of Labor, initial jobless claims fell 5,000 to a seasonally adjusted 249,000 in the week ending October 1, compared to the preceding week's reading of 254,000, while market analysts anticipated a slight rise to 255,000 in the reported period. It was the 83rd consecutive week of initial claims remaining below the 300,000 level, the longest streak since 1973. Furthermore, the four-moving average of claims, considered a better measure of labor market trends, declined 2,500 to 253,000 last week, the lowest level since December of 1973. The data also showed the number of continuing claims decreased 6,000 to 2.058 million in the week ended September 24, while its four-week moving average declined 21,000 to 2.095 million. Meanwhile, analysts expect Friday's NFP report to announce 171,000 new jobs for September and the unemployment rate to remain unchanged at 4.9%. Immediately after the release of initial jobless claims, the US Dollar rose against other major currencies, trading at 1.1179 against the Euro, 1.2641 against the British Pound and 103.89 against the Japanese Yen, while its Index advanced to 96.44.
Upcoming fundamentals: US banking holiday
US banks will be closed in observance of Columbus Day, and data will not be coming from the US, which means that the US Dollar's strength will not affect the financial markets. Due to that, it is most unlikely that a data release will make noticeable changes in the price of the yellow metal.
Gold finds support in 1,250
Daily chart: The yellow metal continued its way down on Thursday, as if there are no support levels, which could affect it. However, that is now almost the truth, as the only significant level of support left is the third monthly support at 1,244.01. The metal's fall has been so drastic, that almost all patterns have been broken and analysts are concentrating more on the fundamentals. However, the 1,250 mark provides a psychological level of significance, and it might stop the drop, as it already did manage to slow it down during Thursday's trading session.Daily chart
Hourly chart: The hourly chart for the yellow metal reveals even more information. First off all, the metal rebounded against the psychological level of 1,250 not once, but two times during Friday's trading session, as it occurred at 6:00 and 19:00 GMT. Moreover, in the middle of that the metal fell to 1,241.34 around 15:00 GMT. Since 19:00 GMT the metal continued to surge.
Hourly chart
Traders remain bullish
Meanwhile, OANDA Bank clients remain majorly bullish with respect to the bullion, as on Monday morning 77.47% of all positions were long. In the meantime, SAXO bank clients show a similar trend with 62.65% of all positions being held by bulls.