Gold (XAU/USD) slides from $1,870s towards the $1,860 area, after a mild-weaker than expected US Initial Jobless Claims reported during the New York session. At press time, XAU/USD is trading at $1,865, down 0.08%.
The US Bureau of Labor Statistics, also known as BLS, reported the Initial Jobless Claims for the week ending on November 13. The figures came at 268K, 8K higher than estimations, but 1K lower than the previous week, revised up to 269K. Surprisingly Continuing Jobless Claims fell by 200K, from 2.209M to 2.080M in the week ending on November 6.
According to sources cited by Bloomberg, Unemployment claims "have been declining on a sustained basis, and are moving to pre-pandemic levels." Further added, "layoffs are falling, reflective of companies holding on to workers amid a labor shortage.''
Once the news crossed the wires, XAU/USD dipped to the daily S1 pivot at $1,858 but instantaneously recovered above the $1,860 region.
Further, as the Wall Street open approaches, US bond yields remain subdued as in the overnight session. The US 10-year benchmark note is flat at 1.60%, while the US Dollar Index took a breather after holding to the 95.80 level, down 0.02%, sitting at 95.76.
The daily chart shows that gold found strong resistance around the November 16 high at $1,877. Since then, it has failed to sustain a break above the $1,870 figure, and today Is not an exception.
However, the yellow metal still has an upward bias, as the 100-day moving average (DMA) is crossing over the 200-DMA. Nevertheless, the 50-DMA remains on the bottom of the pile, failing to gain traction, so it can give gold bulls another reason to open fresh bets against the greenback.
On the downside, the XAU/USD next support area would be, according to Dhwani Mehta, Analyst at FX Street, would be the "$1,857, the intersection of the Fibonacci 61.8% one-day and Fibonacci 23.6% one-week." Further, a break below the abovementioned level could send gold tumbling towards the confluence of the pivot point one-month R2 and the November 17 low around $1,849, which would be the last line of defense for gold buyers.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.