The precious metal had been talk of the town last week after tariff war with China and addition of Mexico heated up as all were pointing towards slowdown in the U.S. GDP and developing economies. The thrust of tariff war and expectation of rate cut by Federal Reserve had acted as a catalyst to furnace the precious metal prices making it to hit a high of 32,882 levels. The counter was muted today as the market participants were waiting for Non-Farm Payrolls data that measures the change in the number of people employed during the prior month, excluding workers in the farming industry as it is expected to bring some firecrackers. The Bureau of Labor Statistics has come up with total unemployment numbers except farming industry are 75,000 in May much below the expectations of the Wall Street. The jobless rate held steady as expected 3.6%. Wage inflation grew by 3.1% on annualized basis.
Trader’s Walk on Gold Today
On hourly scale, the lower numbers by Bureau of Labor Statistics for Non-Farm payroll have ignited the precious metal as it has indicated how the U.S. economy is fundamentally strong and has improved the chances of rate cut by U.S. Federal Reserve. The precious metal is on the verge of giving a breakout of ‘Rectangle’ pattern. The precious metal is trading above 50 hours Exponential moving Average. RSI is hinting for more upside.
On daily scale, the precious metal has been very precious after breaking the ‘Falling Channel’. The precious metal is trading above 50 days Exponential Moving Average and expected to continue its bullish momentum next week till its potential resistance that is placed at 1358.11 levels. Stochastic oscillator and RSI are hinting for upside showing no signs of divergence and overbought situation.