• US Nonfarm Payrolls for October exceeded forecasts of 193K.
• The US Unemployment Rate edged higher, at around 3.7%.
• Gold Price Analysis: Dived at the headline but resumed its early gains.

Gold price seesaws around $1648 after a measure of employment in the United States showed the economy added more jobs than expected, as the US Department of Labor reported, while the US Dollar weakened. US Treasury yields rose, though this did not deter Gold from clinging to earlier gains. At the time of writing, XAUUSD is trading at around $1640-$1660 in a volatile session

US Nonfarm Payrolls crushed expectations, and the Unemployment Rate rises

The Bureau of Labor Statistics (BLS) revealed that US Nonfarm Payrolls for October rose by 261K above estimates of 193K, suggesting that the US Federal Reserve will need to keep lifting rates due to the tightness of the labor market. Given that the US central bank hiked 0.75% for the fourth time in the year and acknowledged an overheated labor market, the December meeting could be live, where the Fed could weigh its options by half or three-quarters of a percent.

In the same report, the Unemployment Rate jumped by 3.7% due to lower participation, and Average Hourly Earnings were unchanged at 6.7%.

Markets’ reaction

XAUUSD price dived towards $1641.16, shy of the 200-EMA as shown by the 5-minute chart, before bouncing off and climbing towards the high $1650s, as the US Dollar weakener, breaking on its way up, the 50-EMA and the 20-EMA, each at  $1649.88 and $1651.82, respectively. Even though,  to further extend its gains, XAUUSD lacks the strength to re-test the weekly high of $1169.52, as the Relative Strength Index (RSI) at overbought conditions suggests a pullback towards the $1650 area is on the cards.

XAUUSD 5-minute chart

Gold Key Technical Levels