Gold hit a two-week high of $2,378 on Thursday after the US Bureau of Labor Statistics (BLS) announced weaker-than-expected jobs data and set Treasury bond yields flat.
Meanwhile, the price of gold is now at $2,370.63 which is down by 0.24% since it opened in the Asian trading session this morning.
Employment data was one of the main drivers after the BLS revealed that the number of unemployed Americans exceeded market forecasts from previous readings.
In addition, the European Central Bank (ECB) decided to cut interest rates and was the cause for US Treasury yields to increase before they decreased previously.
The US 10-year benchmark was set to post weekly losses as it retreated from a daily high of 4.32% to 4.285% after the ECB monetary policy easing decision.
With that, the US Dollar Index (DXY) decreased against the main currency group by 0.12% to 104.14 points.
Market participants are now focusing on the US Non-Farm Payrolls (NFP) report at 8.30pm tonight.
The market consensus is that the economy will recover with an increase of 185,000 in the workforce over 175,000 in April. The unemployment rate is expected to be at 3.9% and the Average Hourly Income also remains at 3.9%.
Looking from a technical point of view, gold extended its rally after strengthening in the $2,320 to $2,360 area. Buying sentiment has prompted a break above previous resistance levels and extended its gains.
Next, the market set a key resistance level at $2,400 followed by an all-time high around $2,450.
If there is a downward bounce, the lower support level will be placed at $2,350 followed by the May 8 low at $2,303. Third support was placed at the May 3 cycle low around $2,277.
