DECLINING DOLLAR PRESSURE IN XAUUSD ACCELERATES RISES
While most of the global markets were closed on the last trading day of the past week, the non-farm payroll report in the USA was closely followed. In the report, NFP increased by 916,000 people in March, the highest increase since August 2020. The unemployment rate decreased to 6 percent, while the average hourly earnings contracted by 0.1 percent despite the expectation of an increase of 0.2 percent. The fact that non-agricultural employment entered into an upward momentum with the implementation of large-scale financial support in March, the acceleration of vaccination efforts and the relaxation of restrictive measures created a value gain on the dollar side. After the ISM Service PMI figure announced on the first trading day of the week in the USA exceeded the expectations, the dollar index, which faced profit realization despite the lack of volume in the markets, triggered an upward movement on the Ounce Gold side. In addition, the slight decline in US 10-year bond yields to 1.68 percent brought along pricing in precious metal above 1735. US President Joe Biden announced that while the implementation of the new infrastructure incentive package of $2.25 trillion without the support of Republicans positively triggered the risk appetite in the markets, Biden defended the proposal of US Treasury Secretary Yellen to increase the corporate tax rate.
In the light of all this information, the rises in Ounce Gold, which turns its direction up, may gain speed within the framework of 1745 and 1765 resistance levels, depending on the protection of pricing above 1725. However, in a possible downward revision, a close below the 1725 level could result in declines reaching the 1685 and 1660 support levels.