. Gold Down, Strong U.S. Jobs Report Fan Fears of Fed Asset Tapering

Gold Down, Strong U.S. Jobs Report Fan Fears of Fed Asset Tapering

09 Aug 2021

 Gold was trading 0.88% down at  $1,747.60.

Gold was down on Monday morning in Asia, after sliding as much as 4.4% to a more than four-month low. Strong U.S. jobs data increased fears that the U.S. Federal Reserve would hike interest rates and begin asset tapering earlier than expected.

Gold futures fell 1.19% to $1,742.10 by 1:20 AM ET (5:20 AM GMT), with prices touching $1,684.37, the lowest since Mar. 31, earlier in the session.

Gold broke below its bull-market defining trendline for the first time since 2019, fueling significant stop-outs and melting the yellow metal’s prices, TD Securities analysts said in a note.

The latest U.S. jobs report, released on Friday, said non farm payrolls rose by a better-than-expected 943,000, while the unemployment rate fell to 5.4%, in July. Investors now await further data, including the core consumer price index (CPI), on Wednesday.

Meanwhile, prices eased in India, where the physical gold market flipped into a small premium during the previous week for the first time in a month. However, activity remained subdued in one of gold’s biggest hubs.

In other precious metals, silver fell 2.6% at $23.70, after sliding 7.5% to a more than eight-month low of $22.50 per ounce earlier in the session. Platinum fell 1.5% and palladium edged up 0.2%.

On the technical front Gold , RSI Stood at 35.684, the current price is trading  Below All  the Moving Averages  . So, a  Sell trade can be executed with the following target and stop-loss:

TRADE SIGNAL- Gold– SELL: 1745.50, TARGET:-1695.50, STOP LOSS:- 1770.50.