Spot Gold Retreats After Weak U.S. Jobs Report; Focus Shifts to U.S. Inflation
Spot Gold Retreats After Weak U.S. Jobs Report; Focus Shifts to U.S. Inflation
Spot Gold experienced a volatile session, forming a bearish engulfing candlestick at New York’s close.
The U.S. Dollar Index (DXY) whipsawed, ending nearly flat at 101.15.
This followed a weaker-than-expected August jobs report, which showed the economy added 142,000 jobs, and the unemployment rate fell to 4.2%.
The disappointing data has raised concerns that the U.S. Federal Reserve may be slow to adjust interest rates, with traders now anticipating a 50-basis point rate cut at the Fed’s September 17-18 meeting and fewer expecting a 25-basis point reduction.
Based on technical indicators, the Relative Strength Index (RSI) is mixed, the Moving Average Convergence Divergence (MACD) is negative, and the Average Directional Index (ADX) shows a ranging market.
The bearish engulfing candlestick posted on Friday suggests renewed supply could emerge early in the week.
Traders should monitor signals closely and adjust risk strategies if the $2,480-$2,488 level is breached, as further stop-losses may be triggered to $2,456-58 before any potential bullish correction.
Daily Chart Spot Gold
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