03 August
Gold and silver market
Gold prices declined on Wednesday as the dollar strengthened and bond yields rose following the release of data showing a higher-than-expected increase in U.S. private payrolls for July.
According to the ADP National Employment Report, U.S. private payrolls rose by 324,000 jobs last month, surpassing the economists’ forecast of 189,000 jobs, as reported by Reuters.
Last week, the Federal Reserve raised interest rates by 25 basis points. The CME’s FedWatch Tool indicates an 83% probability that the central bank will not change rates at its Sept. 19-20 meeting.
Market attention is now focused on Friday’s release of the U.S. nonfarm payrolls report for July, with economists predicting an overall rise of 200,000 jobs after a 209,000 increase in June.
From a technical standpoint, gold prices closed below the 100-day EMA at 1941, while a break above 1950 is needed for the Bulls to gain control. Traders are awaiting the payroll data on Friday for the next market trigger. The RSI is currently trending lower alongside the MACD, and a move of RSI above 55 could signal a resurgence of the Bulls.
Due to oversold intraday charts, a bounce towards 1950 and 1965 levels is possible.
