Gold Price Retreat On Profit Taking, Ahead of Nonfarm Payrolls

Gold prices
Gold prices

Gold price retreat today after yesterday’s strong gains, as investors shift to safe-haven assets after disastrous jobless claims report from the USA. The jobless claims for the previous week came in at 6.64 million beating the expectations of 3.50 million. Adding the previous week jobless claims data, we have almost 10 million new Americans claiming unemployment benefits.

Gold price managed yesterday to break above the 50-day moving average and bulls look stronger. I expect gold to continue to attract bids as the economic data are coming weaker across the globe.

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Gold Price Support and Resistance

Gold price is 0.04% lower at $1612 as investors are booking some profits after the two day’s rally. The technical outlook is bullish, and a new leg higher might has just started after the break above the 50-day moving average. 

On the upside, first resistance for gold price stands at $1,618 the daily high. Next hurdle stands at $1,627 the high from March 31st trading session. A break above might test 1,637 the high from March 30. 

On the other side, initial support stands at $1,606 the daily low. If the gold price moves below, the next support area will be met at 1592 the 50-day moving average. Next support will be met at 1,568 the low from April 1. 

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