Gold tumbled on Friday on positive Non-Farm Employment numbers. An encouraging U.S jobs reports provided strong support for the dollar when data indicated the U.S adding 257K new jobs in January, far exceeding estimates at 236K, causing the gold to decline more than 3% on Friday. The positive jobs number has led to speculation that strong U.S data can increase the possibility of a rate hike when the Fed convenes in June which could further discourage investors from putting their money on the ‘safe-haven’ asset.

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From the above daily chart, as of Friday’s closing the price now sits nicely on at a resistance turned support level (1232.76) and is further supported at the Fibonacci Retracement 61.7% levels.

However, Chinese had registered a record trade surplus in January with imports falling 19.9% which was the most in five years following a fall in commodity prices and weak domestic demand. Exports had slide 3.3%, leading to a net trade surplus of $60 Billion. Given that the trade balance is the largest buyer of gold, this could lead to a price rebound in the short term and provide some lift for Gold.