Gold Prices Waver as US Jobs Data Impacts Rate Pause Expectations

Gold trades slightly amid US jobs data.It hit a high of  $2926 at the time of writing and is currently trading around $2922.

US Jobs Data: Key Takeaways

The American economy in February 2025 had a modest gain of 151,000 non-farm payroll jobs, short of the anticipated 170,000. The unemployment rate climbed to 4.1%. Jobs were gained in health care, financial services, transportation, warehousing, and social services, but there was a fall in federal government jobs. There were also adjustments to the previous few months' figures, December's total was revised higher by 16,000, and January was revised lower by 18,000. Mean hourly earnings rose 0.3% to $30.89, a 4.0% increase over the past year.

Rate Pause Hopes to Fade

According to the CME Fed Watch tool, the chances of a rate pause in the Mar 19th, 2025 meeting have decreased to 93% up from 96% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding above the short-term moving averages of 34 EMA and 55 EMA and the long-term moving averages (200 EMA) in the 4-hour chart. Immediate support is at $2895 and a break below this level will drag the yellow metal to $2867/$2850/$2830/$2800/$2770/$2740. The near-term resistance is at $2930, with potential price targets at $2940/$2957/$3000.

It is good to buy on dips around $2880 with a stop-loss at $2850 for a target price of $3000.