Home » Gold Trading Reminder: Non-agricultural Poor U.S. Bond Yields Lead to Gold Price Rebound, But Resistance Remains Strong

Gold Trading Reminder: Non-agricultural Poor U.S. Bond Yields Lead to Gold Price Rebound, But Resistance Remains Strong

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Gold Trading Reminder: Non-agricultural Poor U.S. Bond Yields Lead to Gold Price Rebound, But Resistance Remains Strong

Gold prices rebounded on Monday as poor U.S. bond yields caused by worse-than-expected non-agricultural employment data boosted investor demand for the precious metal. Spot gold was trading at $1,941.08 per ounce during the Asian session, having bottomed out last Friday before the employment report was released. The report showed that nonfarm payrolls rose by 187,000 in July, falling short of economists’ forecast for a 200,000 increase. The weaker job growth led the market to believe that the possibility of the Federal Reserve raising interest rates is unlikely, causing U.S. bond yields and the dollar to fall, which in turn supported gold prices. However, gold prices remain suppressed by the 55-day moving average and the mid-rail of the Bollinger Band. Chase has raised its U.S. economic growth forecast but warns of further downside risks for gold prices. Despite the poor U.S. employment data, JPMorgan’s chief economist said that the bank no longer predicts a U.S. recession this year due to the healthy pace of the economy.

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