Late Monday-issued EW wave analysis noted that gold closed lower for the fourth straight session on Monday and that daily momentum was pointed “firmly lower” but that hourly momentum was diverging a bit.
The final session of the week saw gold dipping sharply as a mild revival in the US dollar’s strength prompted speculators to lock in short-term profits and sel. Friday morning’s low was touched at $1,655 after the yellow metal lost nearly $20 an ounce and fell below its 200-DMA once again.
This morning’s indications showed gold and silver partially reversing yesterday’s losses with modest gains on the order of $4 and 11 cents, respectively. On the other hand, platinum and palladium each advanced by about one percent in the cash markets.
The big surprise this morning was that the US jobs figures…surprised to the upside, and then some. Gold prices promptly fell by as much as $18 (all the way back down to $1,682) in the wake of the report that showed US unemployment falling to 7.7%.