GOLD witnessed more than 0.50% fall from the day’s high yesterday. GOLD future gave up its intraday gains, as traders weighed hawkish signals on monetary policy from the Federal Reserve, while copper prices retreated further amid growing uncertainty over a potential global recession.
A slew of Fed officials spoke on monetary policy this week, with all of them raising the prospect of more interest rate hikes. While Fed Chair Jerome Powell noted recent progress against inflation, he warned that a strong jobs market and sticky inflation could invite more rate hikes.
However, U.S. dollar remained slightly lower, as investors stuck to their views that the Federal Reserve does not need to raise interest rates any more than it should as inflation is starting to get under control.
Adding to this, a higher-than expected U.S. jobless claims number witnessed some pressures on dollar, as the report suggested labor market weakness that can help bring down inflation. Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 for the week ended Feb. 4, data showed. Economists polled by Reuters had forecast 190,000 claims for the latest week.
Technical View- GOLD Future on near to crucial support, a break below 56580 will lead correction towards 56250 and below
Yesterday, Gold Future retreated from the day’s high 57419 and settled at 56852. Since, 6 February 2023, GOLD Future is consolidating below its massive resistance 57385. Adding to this, Falling three candle stick formation was noted on the daily chart, which is indicating for a bearish momentum in near future.
GOLD Future may test immediate support 56580 very soon. A break below would confirm downside target 56400-56280.
Alternatively, on the upside massive resistance is seen at 57385 on closing basis and a break above only will open the door for upside level of 57650-57850.
Today, UK economic growth data to be release with forecast of a contraction. If the data will come according to the forecast then GOLD Future could show speculative move during the day.