Gold Breaks Down as US Jobs Data Crushes Support
Strong US payrolls for May – 172K vs 85K expected, with upward revisions – sent gold tumbling as the dollar and yields surged, turning prior support into resistance.
Gold extended its sell-off after Friday's US jobs report smashed expectations, breaking a key support level that now flips to resistance.
The US economy added 172,000 jobs in May, more than double the 85,000 consensus estimate. April's reading was revised sharply higher to 179,000 from 115,000. The unemployment rate held steady at 4.3%.
The dollar index jumped to 99.81 – the highest since April 7 – while the 10-year Treasury yield climbed 8 basis points. The strong data reduces the urgency for the Fed to cut rates, weighing on non-yielding gold.
Bears now control the tape as the prior floor becomes resistance. Market focus turns to further US data and Fed guidance for the next leg.
Source: FXStreet Forex News