Today all eyes will be on the release of the US employment report Non Farm Payrolls (NFPs) at 1:30pm CET, with traders eyes especially focused on Gold in particular. The reason it could become a very interesting trading day for Gold is simple: as already mentioned in Admiral Markets Weekly Market outlook on Monday, Gold could face a win-win-situation today. As pointed out in the previous weekly market outlook, Gold was already capable of withstanding most of the bullish momentum in the US-Dollar over the past week.
Source: Economic Events 02 November 2018 – Admiral Markets’ Forex Calendar
While the US Dollar Index Future went for new yearly highs, Gold saw a corrective move, but could stabilize significantly above 1,200 USD/ounce, finding first buyers against its breakout region around 1,210 USD/ounce. After the ADP data set came in at 227,000 (expected at 189,000) on Wednesday, usually being a good indication for the NFPs, Gold buyers stepped up, purchasing the yellow metal aggressively against 1,210/215 USD/ounces, pushing prices around 2% higher on Thursday.
This kind of price action can seriously be considered as a sign of strength, and especially a disappointing NFP data set which does not fulfill markets expectations at 190,000, could result in strong upside momentum in the yellow metal, paving the way up to 1,240 and above in the upcoming days, with a first target on the upside being seen around 1,260 USD/ounce, above at 1,280/285 USD/ounce.
Source: Admiral Markets MT5 with MT5SE Add-on – Accessed: 01 November 2018, 10:00 PM CET
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.