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Gold Recovery Continues As USD Slips On Data Misses

Gold Recovery Continues As USD Slips On Data Misses

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Falling Dollar Supports GoldGold prices were seen rallying more than 1% yesterday as softer-than-forecast US data weighed on the Dollar. US Consumer Confidence was seen falling to 106.1 from 114 prior, below the 116 the market was looking for. Additionally, the JOLTS job openings number was seen falling to 8.81 million, down from 9.17 million prior and below the 9.49 million the market was looking for.  In all, it was a disappointing day for US data which, on the back of the recent PMI data misses, strengthens the case for those calling for the Fed to remain on hold next month.US Data on Watch This WeekGold prices are gradually recovering off the August lows, now up almost 3% from that level. Weakness in USD has been a key driver behind the recovery as has the pull back in risk assets. Concerns over the health of the Chinese economy and some disappointment at the limited moves taken so far by Chinese authorities, is feeding into better safe-haven demand for gold. Looking ahead this week, focus for gold traders will be on a slew of key US data headlined by the next labour market readings due on Friday. With a lower NFP forecast and a lower wage-growth number, gold prices look poised to gain further if USD falls into next week.Technical ViewsGoldThe recovery in gold has seen the market trading back above the 1905.46 level. Price is now close to testing the bear channel highs and retesting the underside of the broken bull trend line. This is a key area for the market and a break higher here will put focus on a test of 1973.51 next. To the downside, 1871.04 is the key support to watch.
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