Summary:

• US initial jobless claims fell to its lowest level since 1973 
• Philly Fed rises to 27.9. Employment component hits all-time high
• Gold respects resistance following the release at 1289

Two strong data points from the US have caused the move higher seen in Gold this morning to pause in its tracks and also offered a potential boost to the US dollar which is currently slightly lower on the day. Initial jobless claims fell to their lowest level since 1973 in coming in at 222k against a consensus forecast of 240k and a prior reading of 243k.  

 

 Initial jobless claims fell below their recent lows in the past week. The spike higher in September due to the hurricanes now appears to be quite clearly an anomaly. Source: XTB Macrobond

At the same time as the initial jobless release the Philadelphia Fed manufacturing index also beat forecasts, rising to 27.9. This is well above the 21.9 consensus expectation and also a notable rise on the 23.8 prior print. The positive reading here is in keeping with other manufacturing metrics that have been rising lately and the employment component supported the strong initial jobless reading in moving up to an all-time high.  

 The rise seen in the Philly Fed is supportive of gains seen in other manufacturing indicators. Source: XTB Macrobond

In terms of market reaction, one of the most clear has been in Gold. The precious metal has been gaining today but price ran into possible resistance at the 38.2% fib retracement of the most recent larger move higher at 1289. The 61.8% fib retracement at 1278 is close to yesterday’s lows and should the price continue to fall then this may be worth keeping an eye on for possible support. A failure to hold here would pave the way for a possible move all the way to 1260. 

 

 Gold has run into possible resistance at the 1288 and printed an inverted hammer on H1. Source: xStation