Gold futures retreated from the $1,200 per ounce high from Tuesday after a reportedly stronger than forecasted US jobless claims data was posted. Gold futures are currently down $8.00 at nearly $1,183 per ounce at the New York Commodity Exchange.
The surprise with the Department of Labor statistics report this morning was with a number of other statistics in the report nearing a 15-year low, including the four-week average for initial claims reportedly dropping by 4,250. Interest-rates, on the other hand, have been weighing on gold prices with rates creeping higher in the last week.
“(Gold) traders are most likely ‘squaring-up’ positions ahead of tomorrow’s big monthly employment report,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, regarding the fundamental assessment of the gold futures market. Levy added, “Gold futures have been lacking direction for more than a month now, perhaps awaiting how employment figures and interest-rates will unfold.”
The technical trend for gold remains “up” in my study but have been at a cross-roads twice in the last two weeks. Gold futures – at the moment – appear range-bound within a high of $1,217 on the high side, and $1,170 on the lower support level.
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