Power Transition & US Job Numbers

Yesterday Trump supporters rioted in Washington DC & Entered in Capitol Hill Building illegally. Four rioters died while more than 50 injured. Trump supporters tried to enter in Capitol Hill to reverse Joe Biden win as House was about to certify Joe Biden’s Presidency. Trump supporters interrupted the proceeding while injuring many policemen and staff. America seen its one of the darkest day as Capitol Hill was breached after 1812.

After Capitol Hill episode all social media networks banned President Trump’s account. Today he sent a video message condemning his own supporters and declared there will be a smooth power transition to Joe Biden. Even though he said there will be smooth transition. One more rally is scheduled at 19th January by Trump supporters.

Today US will declare Non farm payroll & Unemployment numbers which will be a major factor for gold price today & for upcoming weeks. This week labor department released advance non farm numbers which gave a shock to market as market was expecting 60K jobs but numbers came 123K.

Today we will see actual non farm payroll which came 245K last month. Currently market is expecting non farm from 60K to 80K. If non farm payroll comes under 50K then we may see good rise in gold prices. However above 80-100K numbers may pressure gold today and in upcoming weeks too.

Unemployment rate was at 6.7% last month. Current expectations are between 6.5% to 6.9%. If unemployment rate slips below 6.4% then we may see good crash in gold. However if unemployment rate goes above 7-7.1% then we may see a good rise in gold price today & in upcoming weeks.

Joe Biden will be US president in 2 weeks from now. He is a democrat, he already hinted that President office will not be same anymore. We need to observe what major decisions he take or what major decisions he reverse in his presidency.

Currently gold is trading at 1909$. I gave a sell signal to my paid subscribers at 1938$ this Wednesday. Current support in gold chart stands at 1898$. If trader breach below 1898$ and manage to close below 1898$ then we may see good weakness in upcoming weeks.

If gold breaks above 1930$ and manage to close above 1930$ then we may see good buying in upcoming weeks.

Conclusion: Even though market is stable compare to march now, We have job numbers and power transition ahead this month. So stay cautious and make sure you follow strict stop loss in trades.

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By marafat