Gold Down Reversing Course From Better-Than-Expected US Employment Data

  • Commodities Analysis
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Gold yesterday settled down by -0.13% at 50678 reversing course as better-than-expected U.S. employment data bolstered the dollar. Data showed nonfarm payrolls increased by 1.371 million jobs in August. The unemployment rate fell to 8.4% from 10.2% in July. However, this data does not change the U.S. Federal Reserve's stand on more stimulus to be pumped into the economy and its take on tolerating a higher inflation rate, keeping gold supported in the long run.
  
Retail demand for physical gold picked up slightly in India on a dip in domestic prices and a festival, but top bullion hubs across Asia saw muted activity. Dealers offered discounts of up to $40 an ounce over official domestic prices, inclusive of 12.5% import and 3% sales levies, easing from last week's $43, a five-month peak.
 
India's gold imports in August nearly doubled from a year ago to the highest level in eight months on an improvement in investment demand and as some jewelers restocked after New Delhi eased lockdowns, a government source said. The world's second-biggest consumer of the precious metal imported around 60 tonnes of gold in August, up from 32.1 tonnes a year ago, the source said.
 
Technically market is under long liquidation as market has witnessed a drop in open interest by -1.42% to settled at 13559 while prices down -64 rupees, now Gold is getting support at 50332 and below the same could see a test of 49987 levels, and resistance is now likely to be seen at 51052, a move above could see prices testing 51427.       
 
Trading Ideas:   
#             Gold trading range for the day is 49987-51427.
#             Gold fell reversing course as better-than-expected U.S. employment data bolstered the dollar.
#             Data showed nonfarm payrolls increased by 1.371 million jobs in August.
#             Retail demand for physical gold picked up slightly in India on a dip in domestic prices and a festival, but top bullion hubs across Asia saw muted activity.

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