Steady Ahead Of US Payrolls

Gold is slightly higher in the Asia-Pac session, after closing little changed at $1820.30 on Thursday, as the market awaited US Non-Farm Payrolls later today. Bloomberg consensus expects +170k in September payrolls versus +187k prior. The unemployment rate is forecast to dip to 3.7% from 3.8% prior.

• US Treasuries finished the NY session with a twist-steepening, pivoting at the 20-year, with yields 4bps lower to 3bps higher. There was little selling pressure from another tight reading on jobless claims and a narrower trade deficit, though a dovish tone from the Fed's Daly provided some support.
• SF Fed President Daly said, "If we continue to see a cooling labour market and inflation heading back to our target, we can hold interest rates steady and let the effects of policy continue to work".
• According to MNI’s technicals team, the bearish theme in gold remains intact, with the metal trading just above this week’s low. The recent sell-off resulted in a break of support at $1901.1 and this was followed by a breach of $1884.9, the Aug 21 low. This confirmed a resumption of the downtrend that started in early May. The focus is on $1804.9, the Feb 28 low and a key support. On the upside, firm resistance is at $1884.3, the 20-day EMA.