GOLD Displays Resilience Despite Strong US Jobs Report – Bullish
GOLD Displays Resilience Despite Strong US Jobs Report – Bullish Momentum Ahead
Gold faced a substantial sell-off following the release of the United States Nonfarm Payrolls (NFP) report for December, surprising market participants with stronger-than-expected job gains. Despite the initial bearish trend triggered by robust employment figures, our analysis suggests a resilient outlook for gold, hinting at potential bullish momentum ahead.
Surprising Job Gains:
In an unexpected turn, US employers added 216,000 workers, surpassing both the projected figure of 170,000 and the previous reading of 173,000. This surge in job gains prompted investors to reevaluate their positions in gold, traditionally considered a safe-haven asset in times of economic uncertainty.
Contrarian Unemployment Rate:
Contrary to market projections, the Unemployment Rate held steady at 3.7%, defying expectations of a potential increase to 3.8%. This unexpected resilience in the job market dynamics prompted a swift reaction in the financial markets.
Technical Resilience and Bullish Outlook:
Despite the initial sell-off, our technical analysis highlights the resilience of gold. The price rebounded strongly from the crucial 50% and 61.8% Fibonacci levels, concurrently rejecting the 100 Moving Average in the H4 timeframe. This robust technical setup lays the groundwork for a potential bullish swing continuation, signaling the possibility of forming new higher highs.
Anticipating Bullish Momentum:
While the strong US jobs report initially challenged gold's safe-haven status, the technical indicators and strategic rebounds from key Fibonacci levels paint a bullish picture. As investors reassess their positions, the potential for renewed bullish momentum in the gold market becomes increasingly likely, presenting opportunities for traders to capitalize on the evolving market dynamics.
Our preference
Long positions above 88.60% Fibo with targets at 2068.00 & 2090.56 in extension.
Gold faced a substantial sell-off following the release of the United States Nonfarm Payrolls (NFP) report for December, surprising market participants with stronger-than-expected job gains. Despite the initial bearish trend triggered by robust employment figures, our analysis suggests a resilient outlook for gold, hinting at potential bullish momentum ahead.
Surprising Job Gains:
In an unexpected turn, US employers added 216,000 workers, surpassing both the projected figure of 170,000 and the previous reading of 173,000. This surge in job gains prompted investors to reevaluate their positions in gold, traditionally considered a safe-haven asset in times of economic uncertainty.
Contrarian Unemployment Rate:
Contrary to market projections, the Unemployment Rate held steady at 3.7%, defying expectations of a potential increase to 3.8%. This unexpected resilience in the job market dynamics prompted a swift reaction in the financial markets.
Technical Resilience and Bullish Outlook:
Despite the initial sell-off, our technical analysis highlights the resilience of gold. The price rebounded strongly from the crucial 50% and 61.8% Fibonacci levels, concurrently rejecting the 100 Moving Average in the H4 timeframe. This robust technical setup lays the groundwork for a potential bullish swing continuation, signaling the possibility of forming new higher highs.
Anticipating Bullish Momentum:
While the strong US jobs report initially challenged gold's safe-haven status, the technical indicators and strategic rebounds from key Fibonacci levels paint a bullish picture. As investors reassess their positions, the potential for renewed bullish momentum in the gold market becomes increasingly likely, presenting opportunities for traders to capitalize on the evolving market dynamics.
Our preference
Long positions above 88.60% Fibo with targets at 2068.00 & 2090.56 in extension.
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