FXStreet (Mumbai) – Gold prices fell to a 10-week low of USD 1165.2/Oz after a stellar non-farm payrolls report released in the US increased prospects of a rate hike this year.
Gold falls as USD strengthens
The labor department data released in the US showed the US economy added 280K jobs in May, which is significantly higher than the consensus estimate of 225K. The average hourly earnings rose to 0.3% month-on-month in May, compared to 0.1% rise seen in April. Labor force participation rate ticked higher to 62.95, along with a rise in the unemployment rate to 5.5%.
A strong data pushed the USD higher across the board. The USD index now trades 1.11% higher at 96.54 levels. Consequently, the yellow metal weakened to a 10-week low of USD 1165.2/Oz.
Gold Technical Levels
The metal currently trades at USD 1167.9/Oz; down 0.62%. The immediate support is seen at 1160.00, under which losses could be extended to 1142.6 (Mar. 17 low). On the other hand, a break above 1169.6 (May. 1 low) could see the metal re-test its 5-DMA currently located at 1182.58.
(Market News Provided by FXstreet)