Gold prices fell on Thursday after hitting more than three-week highs, as a stronger US dollar and Treasury weakened support for expectations that federal interest rates will be cut early next year. The dollar index rose 0.3% after hitting a five-month low.
Yields on the benchmark US10Y 10-year note also rose, falling to their lowest level since July. US jobless claims increased last week, indicating that the labor market will continue to cool both for the year and in the fourth quarter.
The number of Americans filing initial claims for unemployment benefits rose by 12,000 last week to 218,000, indicating that the labor market continued to cool during the year and the fourth quarter. Lower interest rates reduce the cost of unprofitable orders.
On a physical level, China and Hong Kong’s net gold imports in November increased by approximately 37% compared to the previous month.
Gold prices rose sharply after the dollar index fell near a five-month low on market expectations of a US interest rate hike next March.
Technical Outlook
Gold fell from a high of 63821 to now 63269, down 0.19%. Yesterday, prices stabilised at 63389 compared to the previous day’s 63678. The recent price action led to the formation of a dark black cloud candlestick, indicating a recent trend reversal.
As per the outlook given on 22 December 2023, After breaching the resistance of 62720, gold prices touched our both predicted target 63050-63350.00.
Now on the downside, crucial support can be seen at 63150 and slightly below that, prices may soon pull towards 62800-62580. Alternatively, there is immediate resistance on the upside at 63850 and a further upside could go above it the next resistance is 64150-64450.
Therefore, traders must be careful because the price of gold can correct somewhat in a short period of time.
Commodity Samachar
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