US private companies created less positions than expected last month; however, a fall in the jobless rate suggested that the labour market remained on a strong footing. The Labour Department reported on Friday that nonfarm payrolls rose 98,000 in March, compared to the previous month's downwardly revised gain of 219,000. Meanwhile, analysts expected the economy to add 174,000 new jobs during the reported period. According to economists, nonfarm employments was hit by the weather-related effects of the big storm that hit the Northeast and Midwest. Meanwhile, the unemployment rate fell to 4.5%, the lowest since May 2007, from 4.7% in February, while analysts anticipated an unchanged reading.
In order to keep up with growth in the US working age population, the economy needs to create at least 75,000 jobs each month. Job growth averaged 178,000 per month in the Q1 of 2017, suggesting that an expected 1.0% GDP rise for the Q1 could be temporary. Average hourly earnings advanced 0.2% in March, after climbing 0.3% in the prior month. Back in March, the Fed raised rates for the first time this year and promised two more hikes in 2017. With the economy expected to bounce back in the second quarter, analysts pegged June for the next rate hike.
Upcoming events: Minor events
Most would say that during Today's trading session nothing is set to occur. However, there are some minor events, which provide a minor possibility to cause volatility in the markets. The JOLTS Job Openings data will be published at 14:00 GMT. At 17:45 GMT the FOMC Member Kashkari will give a speech and might provide signals regarding the future of US monetary policy.
Gold trades in established range
Daily chart: During the early hours of Tuesday's trading session the yellow metal continued to trade just below the resistance cluster, which is located near the 1,257 mark. Just as forecasted, on Monday the bullion bounced between the just mentioned cluster and the support provided by the 50.00% Fibonacci retracement level, which is located at the 1,248.96 mark. The fluctuations should continue. However, it is possible, if the political turmoil persists, that the commodity price breaks the resistance put up by the weekly PP at 1,256.96 and the 200-day SMA, which is located at the 1,256.67 mark.Markets remain bullish
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being near 1,300 in July
Traders who were asked regarding their longer-term views on gold between March 11 and April 11 expect, on average, to see the metal near 1,300 in July. Generally, 49% of participants believe the price will be above 1,300 in ninety days. Alongside, 39% of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.