FxWirePro- Gold trades weak on upbeat US jobs data, good to sell on rallies

Gold pared some of its gains after upbeat US jobs data. It hit a low of $2632 at the time of writing and is currently trading around $2638.42.

US economy has added 254000 jobs in Sep from 142000 previous month, well above the forecast of 147000. Unemployment rate declined to 4.1% vs. Estimate 4.2%.

U.S. Average Hourly Earnings m/m- Actual: 0.4% v Expected: 0.3% Previous: 0.4%

US dollar index-

The surge in the US dollar index after strong gains in US jobs data prevented the yellow metal from further gains.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Nov increased by 89.70% from 46.70% a week ago.

Technical (4 hour chart)-

The yellow metal trades above short-term (34 and 55 EMA ) and long-term (200- EMA) in the 4-hour chart.

The near–term support is around $2624, a break below targets $2610/$2600/$2570/$2560/$2545/$2520/$2470. Major bearish continuation only below $2470.The yellow metal faces minor resistance around $2670 and a breach above will take it to the next level of  $2689/$2700.

Indicator (4- hour chart)

CCI (50)- Neutral

Average directional movement Index - Neutral

It is good to sell on rallies around $2659-60 with SL around $2675 for TP of $2600.