
Gold prices have been under pressure since this morning today. Prices continued trading downside as stronger than expected U.S. inflation. And labor market data saw fears of more Fed rate hikes come back into focus, in past three trading sessions.
Gold prices plunged to the one week low yesterday. While Treasury yields surged after data showed that the personal consumption expenditures prices read much hotter than expected. In the first quarter of 2023.
The advance estimate of first-quarter gross domestic product (GDP) showed a 1.1% annualized rate during the period. The economy grew at a 2.6% pace in the fourth quarter. Economists polled by Reuters had forecast GDP rising at a 2.0% rate.
Further, the Labor Department on Thursday showed initial claims for state unemployment benefits. Decreased 16,000 to a seasonally adjusted 230,000 for the week ending April 22. Indicating that the labor market was running strong despite the Fed’s expectations for some cooling.
The data fueled concerns that inflation will remain sticky in the coming months. And attract more policy tightening by the Fed. Such a scenario bodes poorly for non-yielding assets such as gold.
The central bank is widely expected to raise interest rates by 25 basis points when it meets next week. With any signals on the future of monetary policy being closely watched.
However, gold prices will expect to find support especially on fear of the U.S. may slips into recession. The yellow metal had rallied close to record highs earlier in April on this speculation. And was still set to close the month nearly 1% higher.
Later today, a cluster of U.S. economic data. Including Core PCE Price Index, Employment Cost and Revised UoM Consumer Sentiment due to release. Which will expect to bring clutter for the gold prices.
Technical View

Gold prices retreated from the peak of 60428 and after breaching the crucial support 60150 dropped to recent low 595470.
As per the view given on 21 April 2023, proven accurate Gold prices hit both predicted levels of 59800-59650.
On the above daily chart, the short term trend is expected to remain negative following the breakdown of 60150.00. It’s expected that prices may test next support 59450 -59300 very soon.
However, 59200 will act as a decisive support, a break below only prices may show a new crunch for next support 58850-58750.
Alternatively, failure of the break will create a probability for pullback again. And prices may retest immediate resistance 59850-60150 and above.
As trend expect to remain volatile ahead of Fed policy meet , scheduled next week.