US Job Numbers
Crucial US job numbers will be major deciding factor of gold price in September. Last month unemployment rate stunned market and came better than expected. Last month unemployment rate was at 10.2%. September’s unemployment rate expectations are between 10% to 9.5%. If unemployment rate hit below 9.5% then expect good crash in gold upto 1850-1800$. A rise in unemployment rate above 10.2% may send gold price to hit lifetime high once again. I will cover more on my youtube channel here
Recent crash in gold price from 2070$ to 1870$ came as dollar index advanced from lows of 93. But gold could not sustain on lower levels due to rising tensions between US & China. Exploding covid-19 cases also contributing in gold price rise. Last week gold recovered from 1905$ to test 1975$ as Fed chairman stated that FOMC is willing to rise inflation in order to support US economy.
Fed chairman cleared that he is not looking to raise interest rate in near term even if inflation exceeds Fed’s 2% target. They are willing to compromise on inflation in order to fuel economy’s growth. This came as surprise as fed is a major advocate to keep inflation on or below 2%.
Gold price fired from 1910$ to 1970$ after that statement as even fed is counting on weak economies. Recent job & GDP numbers from across the world showing crack & suggesting a big recession in upcoming months. But equity market euphoria keeping gold prices in check.
Currently gold prices trading at 1960$. Good support in gold chart stands at 1890$. If trader break and manage to close below this major support. Then expect good crash in gold upto 1850$ – 1800$ or even more crash is not ruled out.
Good resistance in gold chart stands at 2076$. This is above lifetime high. If traders break and close above 2076$. Then another fresh bull run in gold not ruled out till 2150$- 2240$.
Conclusion: Currently gold chart is in weak zone due to recent crash of 1870$ but silver prices are not entering in weak zone despite many attempts. So stay cautious and keep an eagle eye on job numbers.
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