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Gold jumps to 5-WMA, ‘Sell the fact’ underway?

FXStreet (Mumbai) - Gold prices jumped to the 5-week MA at USD 1077.60/Oz, while the treasury yields backed-off from near 5-1/2 year highs, indicating the ‘sell the fact’ trade may have begun.

Poised for a weekly gain

The metal now looks set for a weekly gain as it trades at least higher by $10 from its weekly opening price.

Moreover, the rate hike talks have been here for more than a year and now that the jobs report opened doors for the much awaited liftoff at the Dec 16 meeting, the ‘Sell (USD) the fact trade” could resume.

Gold has been sold aggressively throughout the year, while the USD was on the run in anticipation (“buy the rumour”) of the liftoff.

Gold Technical Levels

The metal clocked a high of USD 1081.73/Oz. The immediate resistance is located at 1100/Oz, above which the prices could test 10-WMA at 116.53/Oz. On the other hand, a break below hourly 200-MA now at 1065.91/Oz would expose the latest cyclical low of USD 1046.18/Oz.

Canada’s unemployment rate up at 7.1%; job loss concentrated in service sector

Canada’s Statistics Canada today reported the Canadian economy shed 35,700 jobs in November. The worse-than-expected drop in jobs pushed November's unemployment rate up to 7.1 per cent. The unemployment rate had fallen to 7 per cent October. Temporary hiring to support public administration work during the election period had caused employment to rise significantly in October. Economists had estimated the country to shed 10,000 jobs in November and the unemployment was expected to stay at 7 per cent.
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