Gold gained sharply after dismal US jobs data. It hit a high of $2521 at the time of writing and is currently trading around $2521.
US ADP employment shows that the economy has added 99000 jobs well short of market expectations of 144000. The number of people who have filed for unemployment benefits declined by 5000 to 227000 for the week ended Aug 31st, below the consensus of 231000.
The yellow metal is trading below 34 and 55 H EMA in the 4 hour chart ($2500 and $2499). The weakness can be seen only if it closes below $2470. A break below targets $2450 is possible.
US dollar index- It is consolidating after forming a minor top around 101.91. Any close above 102 confirms minor bullishness.
The yellow metal faces minor resistance around $2500, a breach above will take it to the next level of $2508/$2515/$2525/$2530/$2550.
It is good to buy on dips around $2500 with SL around $2490 for a TP of $2530.
