Gold extended losses to hit a session low of $1216.96 levels after the data released in the US showed healthy job gains and rebound in wage growth figures.
Clocks four-day low
Prices currently trade at four-day low. At $1219 levels, the metal is still higher on the week; given the opening price was $1213.56.
Treasury yields are trading positive now, while interest rate futures are pricing in a rate hike in September. The 2-yr yield, which mimics rate short-term rate hike bets, is up more than three basis points at 0.764%.
Consequently, the metal is being offered, with bears eyeing 50-DMA support at $1212.60. Moreover, the rise in the unemployment rate is being ignored, given the labor force participation rate ticked higher as well.
Gold Technical Levels
The immediate support is seen at $1212.60 (50-DMA), under which prices could test $1200 support. A break lower would expose $1191.53 (Oct 15 high. Conversely, acceptance above $1244.12 (Mar 30 low) would open doors for a re-test of daily high of $1235.36 and $1240.41 (previous day’s high).
(Market News Provided by FXstreet)