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For the second month in a row the US non-farm payroll figures have undershot expectations by some margin, and once again markets spiked on the back of it. Gold’s instant reaction was to jump $12 higher, then almost as quickly gave it all back with a little more. The net effect is that gold’s six-week long move higher is still intact.
Today has seen China come back to work after a week’s worth of new year celebrations, but with so much important data scheduled for the afternoon it is possibly no surprise that they have not shifted markets. Monday and the rest of next week might tell a different story, however.
For those already long on the precious metal it is probably worth hanging on, but we would be considerably more convinced with a close above the 100-day moving average.