The US private sector created more jobs than expected last month, providing support for a Fed interest rate hike on Wednesday. The Bureau of Labor Statistics reported on Friday that nonfarm payrolls rose 235,000 in February, while analysts expected nonfarm employment to climb 196,000 in the reported month. Meanwhile, January's gain of 227,000 was revised up to 238,000. The construction sector contributed most to the February gain, adding 58,000 jobs. Over the past six months, the sector created an average of 177,000 jobs per month Data also showed average hourly earnings advanced 0.2%, falling behind analysts' expectations for a 0.3% increase. January's rise of 0.1% was revised up to 0.1%.
The jobless rate came in at 4.7% for February, marginally down from the prior month's 4.8% and in line with market forecasts. Over the past three months, the US private sector added an average of 209,000 jobs per month. The better-than-expected NFP report combined with rising inflation are likely to force the Federal Reserve to raise rates for the first time this year on Wednesday, during its policy meeting. Back in December 2016, the Central bank projected at least three rate hikes in 2017. Analysts suggest that the US labour market is at or close to full employment.
Upcoming events: US PPI
During Tuesday's trading session the fundamental data release to look forward is the publishing of the US PPI data at 12:30 GMT. It will be covered live by the Dukascopy research team on the bank's webinar platform. However, a big move is most unlikely, as markets are focused on the US Federal Reserve meeting, which will take place tomorrow.
Gold remains near 1,200 mark
Daily chart: During the previous trading session the bullion failed to move even higher, as the commodity price has retreated back to the 1,200 level, where it remained rather flat on Tuesday morning. However, the bullion's price was positioned to fall, as the closest support level was located at the 1,186.87 mark, where the weekly S1 is located at. In addition, the weekly S1 is strengthened by the lower Bollinger band, which was located at 1,187.74. Moreover, a decline of the price is likely because the 100-day SMA is providing resistance just above the price, as it is located at the 1,205.63 level.Markets remain bullish
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being at 1,300 in April
Traders who were asked regarding their longer-term views on gold between February 14 and March 14 expect, on average, to see the metal near 1,300 in April. Generally, 46% (-5%) of participants believe the price will be above 1,300 in ninety days. Alongside, 39% (+4%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.