Price of Gold Jumps over $1600 on lower Jobs Report Numbers and Short Covering
Gold has quickly jumped over a short term resistance level of $1,600 in response to weaker than expected US non-farm payrolls of 69,000 rather than the expected 150,000 for the month of May. (Source the Bureau of Labour Statistics). Clearly these employment numbers suggest a loss of momentum in the recovery of the overall job market.
Once again investors and traders are taking a look at gold as a safe haven. Many shorts were caught off guard today as the price of the metal jumped over $55 per ounce in early U.S. Trading. Poor U.S. job numbers, the continued instability in the EU, and the slowing Chinese manufacturing numbers are all things that gold traders will need to consider as part of their trading strategy. The Price of gold appears to be setting itself up for bullish technical close.