U.S. has just released Non Farm Payrolls and Unemployment Rate reports. Non Farm Payrolls report indicated that the U.S. economy added just 194,000 jobs in September compared to analyst consensus of 500,000.
On Wednesday, ADP Employment Change report exceeded analyst expectations, but this report does not always paint the same picture as Non Farm Payrolls report.
Unemployment Rate declined from 5.2% in August to 4.8% in September compared to analyst consensus of 5.1%.
S&P 500 futures are swinging between gains and losses after the release of the report, and it looks that traders will need more time to come to final conclusions.
Gold Tests Resistance At $1775
U.S. dollar found itself under pressure after the release of the disappointing Non Farm Payrolls report. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has managed to settle below the support at 94.20 and is currently trying to settle below the next support level at 94.
Meanwhile, the yield of 10-year Treasuries pulled back from 1.60% to 1.57%. A combination of weaker dollar and lower Treasury yields provided significant support to gold, which is testing the important resistance level at $1775. In case gold manages to settle above this level, it will gain upside momentum and head towards the resistance at $1800 which will be bullish for gold mining stocks.
WTI Oil Attempts To Settle Above The $79 Level
WTI oil gained upside momentum after U.S. stated that it did not plan to use strategic reserves in order to put pressure on oil prices. This statement provided significant support to oil which managed to get back to the $79 level after the recent test of the support at the $75 level.
Not surprisingly, energy-related stocks are gaining ground in premarket trading and may move closer to yearly highs during today’s trading session.