- 57% of all SWFX open positions are long
- Gold opened Wednesday's session at 1,251.28
- The 1,250 psychological level once more stopped the metal's fall
- Economic events to watch over the next 24 hours: US FOMC Dudley Speaks; US FOMC George Speaks; US JOLTS Job Openings; FOMC Meeting Minutes
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: Federal Open Market Committee
Today it is all about the Fed. At 12:00 FOMC Member Dudley will give a speech, and he will be followed by George at 13:40 GMT. Between the Federal Reserve events, US JOLTS Job Openings will be published at 14:00 GMT. The main event will be the FOMC Meeting Minutes, which will be released to the public at 18:00 GMT and reveal information regarding the next rate decision of the FOMC.
Gold once more finds support in 1,250
Daily chart: On Wednesday morning the yellow metal had once more found support in the psychological level of 1,250 and rebounded. Previously, by the end of Tuesday's trading session the bullion had failed to break through the resistance put up by the 200-day SMA, which not is located at 1,262.22. Afterwards, the commodity fell and ended the day's trading session almost exactly at the 1,250 mark. As the rebound is in motion, it is most likely that the Wednesday's trading session will end higher, as one more attempt at the SMA is in the making.Daily chart
Hourly chart: The hourly chart shows a different picture for the yellow metal, as on the hourly chart it is the resistance provided by the 100-hour simple moving average, which kept the metal lower. However, the SMA is moving lower together with the commodity price, which means that it might pressure the bullion below the 1,250 mark in the near future.
Hourly chart
Traders increase bullishness
Meanwhile, OANDA Bank clients remain majorly bullish with respect to the bullion, as on Wednesday morning 72.36% of all positions were long. In the meantime, SAXO bank clients show a similar trend with 64.18% of all positions being held by bulls.