Gold Surges to $1237 as Dollar Tumbles on Weak Jobs Report
Gold prices rallied to a 9-day high level of $1237 after a sharp slide in the greenback post disappointing monthly jobs report from the US.
The US Labor Department's labor report showed economy adding only 38k new jobs during the month of May, thus eliminating the possibilities of June Fed rate-hike. The US Dollar, as measured by the US Dollar Index, tumbled immediately after the release, assisting the precious metal to surge past 100-day SMA and $1125 an intermediate resistance.
Currently trading near session peak level, the yellow metal now seems to extend its strong up-move post the disappointing NFP release.
Technical levels to watch
From current levels, the metal seems to extend the rally back towards testing 50-day SMA resistance near $1245-46 region, which is followed by resistance near $1250 psychological level and $1260 horizontal area.
Meanwhile on the downside, previous resistance near $1225-27 horizontal area, now seems to protect immediate downside and any further weakness below this immediate support might now be bought into around 100-day SMA near $1221-20 region.