Gold price trades at the daily highs as the rebound from $1651 continues. Weak fundamental data from the manufacturing and services sector from the USA and Europe shift investors attention to safe-haven assets. The jobless claims for the previous week came in at 6.64 million beating the expectations of 3.50 million. Adding the last week jobless claims figures, we have almost 10 million new Americans claiming unemployment benefits.
On the other hand, coordinated action from the Fed and other central banks ease investors fears about the coronavirus outbreak impact. Coronavirus deaths in Italy, Spain, UK and France declined for the third straight day, showing signs that the pandemic might have reached the peak.
Gold price is 0.38% higher at $1624 trading on positive foot for the fourth consecutive session. Gold positive momentum accelerates above the 50-day moving average. The technical picture is bullish, and a move to yearly highs can’t be ruled out.
On the upside, first resistance for gold price stands at $1,628 the daily high. Next hurdle stands at $1,641 the high from March 26th trading session. A break above might test 1,651 the high from March 12th.
On the other hand, initial support stands at $1,608 the daily low. If the gold price moves below, the next support area will be met at 1593 the 50-day moving average. Next support will be reached at 1,560 the low from April 1st.