Talking Points:

  • Gold Prices Rally as US Dollar Stumbles on NFP Data
  • Intraday US Dollar Support is Found Near 100.75
  • Bullish Breakouts for Gold Prices are Identified Above $1,180.56

Gold prices continue to rally from this morning’s low of $1,166.50, as the US Dollar is set to finish the week lower on worse than expected NFP (Non-Farm Payrolls) figures. NFP totals for November were expected at 180k, but released modestly lower at 178k. The biggest surprise was October’s totals being revised lower by a reported -19k. Technically if the US Dollar continues to retreat on this data, this may signal a shift in momentum for commodities markets including the price of gold.

US Dollar 30 Minute Chart with Pivots

Gold Prices Rise as US Dollar Stumbles on NFP Data

(Created Using TradingView Charts)

Technically, the US Dollar Index (Symbol DXY) is trading back below daily support found at 100.75. This barrier is depicted graphically as today’s S3 pivot, and it should be noted that prices have tested this value prior to today’s NFP announcement. If the US Dollar fails to rally here, it may suggest that prices will make an attempt on the next value of support found at 100.55. A breakout beneath 100.55 should be seen as significant as the US Dollar would then be closing the week near weekly lows.

Gold Price 30M Chart with Pivots

Gold Prices Rise as US Dollar Stumbles on NFP Data

(Created Using TradingView Charts)

Gold prices are trading back above intraday resistance found at the R3 pivot at a price of $1,175.95. Gold prices have tested this value four times this trading session, and if prices continue to rise Gold may be set for a late day breakout. Bullish breakouts may begin above today’s R4 pivot which is displayed above at $1,180.56. However if Gold retreats from present levels, it opens the commodity up to trace back towards points of support. Intraday support values include the S3 pivot found at $1,167.22 and S4 at $1,162.67

--- Written by Walker, Analyst for DailyFX.com

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