Gold Price Higher On Back of NFP Data

The Gold Index (XAU/USD) climbs in the North American session, despite US T-bond yields shooting through the roof after the US Nonfarm Payrolls report smashed expectations. XAU/USD is trading at $1,816.

Financial markets mood is positive. US Treasury yields move higher in the session, with the 10-year benchmark note rate at 1.936%, underpins the greenback, with the DXY flat at 95.50.

On Friday of the last week, the US Nonfarm Payrolls report showed that the US economy added 467K jobs to the economy, smashing 150K estimations. At the same time, the Unemployment Rate rose to 4%, a tick higher than foreseen.

However, Fed concerns about inflation made investors turn their attention to Average Hourly Earnings, which rose more than half-percent, from 5% in December to 5.7% in January, further cementing Fed’s hawkish expectations, as money market futures have priced in at least five rate increases.

The non-yielding precious metal stayed resilient, despite the outstanding US employment report. Following the announcement, XAU/USD found bids around $1790, followed by a break of the $1800 figure, finishing above it in the last week.

Gold traders monitor speaks and official statements whether central bank purchases might be playing a substantial role in keeping gold prices from breaking lower, as the data continues to point to little speculative interest for the yellow metal.

Gold traders’ attention turns to Thursday US inflation figures, which would give some clues regarding US Treasury yields direction, which significantly influences gold prices.

On the other hand, gold’s first support would be $1,800. A downward break would open the door for a fall to the 100-DMA at $1,796, followed by the bottom-trendline of Pitchfork’s channel at $1,790, and January 28 daily low at $1,780.