Gold Price Analysis: Upside remains capped by $1720 ahead of US Jobless Claims
|- Gold consolidates the latest uptick to 1720 levels amid souring mood.
- Haven demand for USD amid global recession fears cap gains.
- Focus shifts to the US Jobless Claims for fresh trading impulse.
Gold prices (XAU/USD) are off the highs and consolidate the latest uptick to near 1720 levels, as the bulls take a breather ahead of the critical US Jobless Claims data slated for release at 1230 GMT.
The safe-haven demand for the greenback extends into Thursday, as the risk sentiment sours on intensifying global recession fears, in the face of the coronavirus pandemic. The US dollar index trades better bid near two-day highs of 100.36. Therefore, the upside attempts in the yellow metal remain in check.
Further, the sentiment around gold also remains undermined, especially in light of the US Federal Reserve (US) Chairman J. Powell’s latest speech, in which he downplayed the odds of negative interest rates.
Despite the retreat in the yellow metal, the bulls remain hopeful on the back of the massive monetary and fiscal stimulus deployed globally to fight the unprecedented coronavirus impact.
Looking ahead, the spot awaits the US employment data for fresh dollar trades, which could offer the next direction on the prices while risk trends will continue to influence the price action.
Gold: Technical levels to watch
At the press time, gold trades modestly flat at 1716.30, as the bulls look to take out the key hurdle near 1720. A break above which would open doors towards May 8 high of 1723.70. Alternatively, the supports are aligned at 1710 (round number) and Wednesday’s low of 1699.31.
It’s worth noting that the price has formed a doji candle on the daily sticks, suggesting a lack of a clear directional bias, at the moment.
Gold: Additional levels
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