US Dollar Holds Firm After Strong NFP Data; Gold Pressured by Rising Oil Prices
  • Market Insights   >   Daily Market Analysis New

US Dollar Holds Firm After Strong NFP Data; Gold Pressured by Rising Oil Prices

Published: 11 May 2026,06:23

Published: 11 May 2026,06:23

Daily Market Analysis New

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

Key Takeaways

*US dollar rebounds after stronger-than-expected Nonfarm Payrolls data

*Rising oil prices lift Treasury yields and inflation expectations

*Trump’s rejection of Iran proposal supports safe-haven dollar demand

*Gold declines as stronger USD and higher yields weigh on sentiment

Market Summary

The US dollar index, which tracks the greenback against a basket of six major currencies, rebounded and gapped higher over the weekend following the release of stronger-than-expected U.S. labor market data.

According to the latest Nonfarm Payrolls report, job growth exceeded market expectations, reinforcing the resilience of the U.S. economy. However, other components of the report delivered a more mixed picture. The unemployment rate remained in line with expectations, while average hourly earnings rose only 0.2%, below the forecast of 0.3%, signaling that wage pressures may be easing slightly.

Despite the mixed details, the overall labor market performance helped support the dollar, although gains remained relatively limited after the initial rebound.

Additional support for the greenback came from a sharp rise in oil prices over the weekend after Donald Trump rejected Iran’s latest proposal to end the ongoing conflict. The renewed geopolitical tensions pushed crude oil prices higher, raising concerns over inflation risks and supporting a rebound in U.S. Treasury yields.

The increase in yields reinforced expectations that major central banks, including the Federal Reserve, may need to maintain a relatively hawkish stance if energy-driven inflation pressures persist.


Gold Under Pressure from Stronger Dollar and Rising Yields

Gold prices moved lower as the stronger U.S. dollar and rising Treasury yields reduced the appeal of non-yielding assets.

Following Trump’s rejection of Iran’s latest peace proposal, oil prices rebounded sharply, fueling inflation concerns and increasing expectations for tighter monetary policy globally. This combination strengthened the dollar and increased the opportunity cost of holding gold, placing downward pressure on the precious metal.

Overall, gold remains sensitive to both geopolitical developments and monetary policy expectations, with rising yields continuing to act as a major headwind for the safe-haven asset in the near term.

Technical Analysis

GOLD, H1:

Gold prices are trading lower, currently testing the 4,685.00 support level, which serves as a key near-term floor.

Momentum remains bearish, with the MACD strengthening to the downside and the RSI at 38 below the midline, indicating sustained selling pressure.

A confirmed breakdown below 4,685.00 could extend losses toward the next support at 4,645.00, with further downside possible if bearish momentum accelerates.

However, if selling pressure begins to fade, a technical rebound may occur, with prices likely to retest the 4,725.00 resistance level, followed by 4,760.00 if recovery strengthens.

Resistance Levels: 4725.00, 4760.00

Support Levels: 4685.00, 4645.00

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

  • Start trading with deposits as low as $50 on our standard accounts.
  • Get access to 24/7 support.
  • Access hundreds of instruments, free educational tools, and some of the best promotions around.
Join Now

Latest Posts

Fast And Easy Account Opening

Create account
  • 1

    Register

    Sign up for a PU Prime Live Account with our hassle-free process.

  • 2

    Fund

    Effortlessly fund your account with a wide range of channels and accepted currencies.

  • 3

    Start Trading

    Access hundreds of instruments under market-leading trading conditions.

Important Notice to Visitors

Our products and services are not offered or made available to residents of your jurisdiction. The information on this Website is not directed at persons in your jurisdiction and is not intended as an offer, solicitation, or promotion of our products or services to them.

By clicking “I Understand”, you acknowledge this notice and confirm that you are accessing this Website at your own initiative. Access to this Website does not mean that our products or services are available to you.

Important Notice

Please be advised that our products and services are currently unavailable to residents and entities located in the Philippines.

This restriction is a result of our firm commitment to adhering to applicable legal and regulatory requirements in all jurisdictions where we operate. In line with our internal compliance protocols and evolving global standards, we continuously assess and update access to our platform to ensure full regulatory alignment.

We appreciate your understanding and cooperation.

If you believe this restriction has been applied in error, please contact our support team for further assistance.

Important Notice:

Important Notice: Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely on your own initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on a reverse solicitation basis in accordance with the laws of your home jurisdiction.

Important Notice:

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Aviso importante:

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.