Search ForexCrunch
  • US Dollar Index recovers to 96.30 on upbeat employment data.
  • Latest trade war headlines weigh on the market sentiment.
  • Nasdaq loses more than 1% in the first half of the session.

The XAU/USD pair is trading in a relatively tight range on Friday as the greenback’s strength following the employment data offsets the heightening demand for safe-havens such as the precious metal. As of writing, the troy ounce of gold was trading at $1234, adding 75 cents, or 0.07% on a daily basis.

Earlier today, the data released by the U.S. Bureau of Labor Statistics revealed that the unemployment rate remained unchanged at 3.7% in October with nonfarm payrolls increasing by 250,000 in October to surpass the market forecast of 190K. Furthermore, annual wage inflation rose to 3.1% in the same period to match analysts’ estimates. Boosted by the data, the US Dollar Index reversed its course following the sharp 2-day drop and advanced to 96.30 area, where it is virtually unchanged on the day.

On the other hand, citing three senior administration officials, CNBC’s Washington correspondent reported that there was no indication of an imminent trade deal between the U.S. and China to force major equity indexes in the U.S. to fall into the negative territory. The risk-off mood in the session also helped gold stay resilient against the buck. At the moment, the Dow Jones Industrial Average and the S&P 500 indexes were down 0.4% and 0.6%, respectively.

Technical levels to consider

The pair could face the first technical resistance at  $1237 (daily high) ahead of $1243 (Oct. 26 high) and $1250 (psychological level). On the downside, supports align at $1225 (Oct. 29 low), $1215 (daily low) and $1209 (50-DMA).