Gold slides ahead of crucial US economic reports

FXOpen

Gold slid down more than $20 an ounce to $1322 yesterday ahead of some crucial economics reports which are due today and tomorrow, the yellow metal is expected to extend slide up to $1300 or even below before resuming further upside movement.

As of this writing, the precious metal is being traded near $1328. Immediate hurdle can be noted around $1337-$1345 resistance area, a break and daily close above $1345 shall expose $1373 which is 76.4% fib level. A reversal from $1373 will print a Higher High (HH) on daily chart i.e. a signal for long term bullish trend.

Gold slides ahead of crucial US economic reports

On downside, support can be seen near $1307, 50% fib level, ahead of $1295 which is 200 Daily Moving Average (DMA). A break and daily close below 200 DMA shall threaten $1250 and then $1220.

Today the US commerce department is due to release durable goods orders report. The report highlights the number of durable goods orders received by the manufacturer. A high reading is seen as bullish for US Dollar (USD) and vice versa. According to median projection of different analysts, durable goods orders declined by 1.5% in January compared to 4.2% decline in a month before. Moreover, the US labor department is also scheduled to release initial jobless claims report today. According to the forecast, number of people –who claimed unemployment benefits—ticked down last week to 335,000 from 336,000 in a week before. A better than expected reading will be bearish for Gold and vice versa.

In addition, Fed chairperson Janet Yellen is also due to speak today. Her remarks about future monetary policy outlook might stir volatility in the price of gold. Then tomorrow, US bureau of economic analysis will release US growth data for the fourth quarter. The fate of gold is linked to these high profile events.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media are

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.