The surprise U.S. missile strikes on Syria that saw investors flocking to the safety of gold seem to have gone to the background, following positive US employment data that reignited speculations of a Fed rate hike. Though a headline payrolls gain at 98,000 was much below the consensus economist expectation of 180,000, the unemployment rate continued to fall, with wage inflation hovering near an eight-year high. Gold hit a 5 month peak of $1271 an ounce on Friday. However, early Monday trading saw most of those gains eroding, with the metal currently perched just above the key psychological support at $1250. On the downside, as long as $1240 is held, the short term uptrend is intact. For the rally to resume momentum, prices need first to take out Friday’s high.
Gold Down From 5-Month High
Daily Analysis - 10/04/2017