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Alert-15:09 (Est) ACM Precious Metals Analysis: Worse-Than-Expected Payroll Data Weighs on Gold as the Dollar Rallies on Risk Aversion
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The inverse relationship between gold and the dollar remained intact as a surge in the dollar against most majors sent the gold price lower. US non-farm payroll dropped 467k vs. 363k forecasted, dampened prospects of a recovery. The decline in risk appetite put gold under pressure, causing gold to dip $11 to $929oz after the payroll data released with August gold futures on COMEX down 1.4% or $13 at $927oz. The Dollar Index climbed .62 or .77% to 80.25. The strength in the dollar continues to drive the gold price as the worse-than-expected payroll number spurred flight-to-quality flows into the dollar, which in turn made gold more expensive for holders of other currencies. From a technical perspective, gold was falling toward the 23.6% line of $926oz on the Fibonacci chart drew from the month-high of $966oz, providing a floor of resistance for the precious metal.
Support: 924.78 Current: 931.07 Resistance: 939.61
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