Weak job numbers are good news for gold

The job data announced Friday by the Labor Department imply more dollar-printing from the Federal Reserve until investors have a rethink.

While America gained only 194,000 positions in September, upside revisions and silver linings such as temporary Delta-related halts changed the direction.

As the expectation for Fed’s tapering has become lower, the weak data is still good enough for the bank to cut back on its $120 billion/month scheme. The precious metal has erased its gains.

Looking up, the resistance cluster awaiting at $1,765 seems weaker. It consists of the PP one-day Resistance 1 and the Fibonacci 38.2% one month.

Looking further above, the next line to watch is $1,780, which is a juncture of lines including the Bollinger Band 15min-Upper, the PP one-day Resistance 3 and the Simple Moving Average 200-4h.

Below $1,748, the next cushion is $1,738, which is where the Fibonacci 61.8% one week hits the price.