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Gold Rockets, Dollar Plunges in Rare Pivot After Heady U.S. Jobs Report

Published 11/04/2022, 02:39 PM
Updated 11/04/2022, 03:05 PM

By Barani Krishnan

Investing.com -- It sounded almost like one of those allegations of manipulation you commonly hear in gold — only this time, those making the accusation were gold bears, not bulls.

Gold had its best percentage win in 2-½ years on Friday as the hedge funds that typically hammer the yellow metal at any given opportunity gave it surprising love instead after the monthly U.S. jobs report again overshot expectations — a situation that would normally benefit the dollar rather than gold.

The Dollar Index, which pits the greenback against the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc, dropped to below 111 at Friday’s low despite the United States adding 261,000 jobs last month in its October non-farm payrolls report, almost 35% more than the 195,000 anticipated by economists. Just a day ago, the index hit a three-week high of 113.035.

U.S. gold futures settled Friday’s trade up 2.8% as the benchmark December contract finished up $45.70 at $1,676.60 per ounce on New York’s Comex. Investing.com data showed it was the biggest percentage win for gold in a day since April 2, 2020, when the benchmark contract then rose 2.9%.

On a weekly basis, December gold rose 1.9% for its best week in four.

The spot price of bullion, which is more closely followed than futures by some traders, was at $1,673.88 by 14:15 ET in New York (18:15 GMT). Just on Thursday, spot gold hit a five-week low of $1,616.69.

Gold’s twist on Friday was unexpected enough that it had even strict trend-watchers like Sunil Kumar Dixit of SKCharting.com mumbling “manipulation.”

“The job numbers simply don’t justify what’s happened to the dollar and gold,” said Dixit, who projects that the Dollar Index should be at around 114 instead and spot gold to be possibly under the previous session’s five-week low.

“The whales in the hedge fund game are clearly manipulating both the dollar and gold, though this time, gold is benefitting,” added Dixit.

Gold commentator Mark Hulbert also appeared to think the rebound wouldn’t last. In his opinion, Hulbert said the yellow metal had to have a complete meltdown before it could rise again from its ashes, not unlike the proverbial phoenix.

“Long-suffering gold bugs will likely have to suffer a while longer,” Hulbert wrote in a blog that appeared on MarketWatch. "That’s because gold traders on the whole have not thrown in the towel and thereby given up on the yellow metal. Only when this so-called capitulation occurs will contrarians be confident that a bottom is at hand. Though there have been several occasions this year when it appeared that capitulation was imminent, gold traders stepped back from the cliff every time.”

“Today appears to be yet another occasion.”

Latest comments

manipulation - i use to scream it when i loose my nba bets
dolar out gold standaard is net o ly real GOLD becomes money.
gold sell now
👍
lmao
China reopening news is far more important and trumps US job numbers. The wider repercussions being, a reflating of Yuan value and more broadly a boost to global economic growth. Commodities and energy sector reflected this change in sentiment on Friday
If The world inflation can't stoped yet,not strange up rising the gold prices.
I think this has less to do with the jobs report and more to do with "rumors" of China returning back to normality.
Unemployment rose and participation rate fell. Wages were stagnant. One part of the report was good and the rest bad. And gold is never manipulated higher. It should be over 4000 when you factor in all the money printing.
It won't be 'rare' for too much longer. Fiat currencies are dying
wouldn't you call a 7-month downtrend in gold death By A Thousand Cuts as opposed to a beheading
all commodities shot up Friday. it wasn't just Gold
Well one day does not make a trend.  And of course it moved up strong, typically coming off it's low.  It might be forming a double bottom, but it still must hold above 1700 to break it's down trend.
Just buy physical gold and silver- comex has sanctioned some of Russia refineries. Just as central banks bought more gold than in the past 30 years.. pound has crashed and being propped up- euro has crashed and likely will go lower- yen has crashed and is being propped up- the usd is going to do the same at some point- Central banks know this- BE THE BANK- Hold some of your wealth in physical gold silver platinum Copper had a incredible day and will rocket higher due to the charging station build out that just started.
I suspect Chinese banks having sold their dollars today which caused 2% plunge in USDCNY and dollar index. Gold took the advantage of it. So the manipulation is likely.
Yes sir- yuan surged -gold surged - silver surged-copper skyrocket today. DX looks like top of range for now. Maybe gold for oil in the free world will crush the dollar and put gold at 5000. Or more
True, a very exciting trade from yesterday's lows! Nice catch!
3% up is rocketing? CMBM is up 20% whats that?
What about folks that got into Bitcoin at over $40K?
What about folks that got into Bitcoin at over $40K?
 Perspective, yes.
Lol
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