Gold prices were lower on Friday as the market continues to correct within a risk-on theme. The yellow metal settled lower following Federal Reserve Chairman Jerome Powell's positive tones over the outlook for the US economy which tempered the recession pundits and stripped away some of the speculative bid in precious metals as the Dollar put up a robust performance, despite a slight disappointment in the NFP data. The report showed that Non-Farm Payrolls in August increased by 130,000 and fell short of the market expectation of 158,000. Additionally, July's reading of 164,000 got revised down to 159,000. However, this did not knock down the USD for too long as the comments from Fed Chair Powell overwhelmed traders.
As expected, Gold prices settled lower during Friday’s session and continue to do so this morning by challenging the critical $1506.02 support level despite making an effort to the upside above the $1520 level. The price is currently hovering around the $1506.02 level with a bearish momentum. A break above this level will most probably send the price deeper as we will be focusing on the $1482.82 support level.
Support: 1494.36 / 1482
Resistance: 1506.02 / 1524.15