Bullion Back Below $2000 After Solid US Payrolls Report

Another robust US jobs report, which was generally close to expectations, and the subsequent higher dollar and yields have weighed on gold prices today, as they didn’t trade on Friday. The resilient labour market suggests that the Fed is likely to remain hawkish for now. Gold prices have fallen below the key $2000/oz level during APAC trading today. They are down 0.8% to around $1992.80, close to the intraday low of $1989.01. Earlier in the day they reached a high of $2006.49.

• Despite today’s move lower, bullion remains well above the 50-, 100- and 200- day simple moving averages. Technicals remain bullish. The break of $2009.70, opened up $2034. Key support lies at $1934.30, the March 22 low. A breach of this would signal a potential reversal.
• There has been increased demand for the precious metal with hedge funds increasing bullish positions to their highest in almost 12 months and China adding to its gold reserves for the fifth consecutive month, according to Bloomberg.
• Much of Europe is closed today. Later there are only US wholesale inventories for February and the Fed’s Williams participates in a moderated discussion. Wednesday’s US March CPI & FOMC minutes and Friday’s March retail sales are likely to be the focus of the week.