Gold Spikes to $4,210 After Weak Jobs Data but Rally Fades
Gold prices briefly surged to $4,210 after the US nonfarm payrolls report showed a significant slowdown in job growth. September payrolls increased by only 29,000, far below the expected 90,000, while August's numbers were revised downward to 133,000. The weak labor data reduced expectations for a Federal Reserve rate hike in October, initially boosting gold as Treasury yields and the dollar dipped.
The rally proved short-lived, however, as Treasury yields and the dollar recovered, pulling gold back from its highs. The dollar index initially slipped to 101.9 but rebounded, limiting gold's upside. The next key economic inputs for gold will be US inflation data and Fed commentary, which could further influence rate expectations.
Gold opened around $4,141.67, briefly fell to $4,124.64, and then recovered to $4,149.76 before testing the $4,150-$4,155 region. Momentum has since flattened near the top of the move, with XAUUSD trading close to its 9-period moving average. Traders are now watching key levels, including resistance at $4,210 and support at $4,125-$4,130.
For a bullish scenario, gold could extend its recovery if it holds above $4,150 and breaks through $4,160-$4,165. A sustained move above $4,200 would strengthen bullish momentum. Conversely, a break below $4,125-$4,130 could weaken the short-term recovery and expose the psychological $4,100 level.