- The gold attracts the purchase of nearly 50 DMA support of the escalating US-China tensions.
- A goodish pick-up in the USD as demand kept a member on a strong growth for the metal.
- Investors will eye the US jobless claims are of little momentum before Friday’s report, NFP.
Gold slightly higher on Thursday and is back above $1700 mark, recovering a part of the night of the fall to nearly four-week low.
The refuge in commodities, and managed to find a bit of support near 50-day SMA, around 1690 area, and gained some traction positive on Thursday, amid concerns about the worsening of US-China relations. The U.S. has suspended the Chinese airlines and the number of passengers to and from the united states with effect from 16 June. The move came after the dragon nation earlier barred American companies from re-entering China.
The latest developments fuelled concerns about a new escalation in tensions between the two largest economies in the world and kept a member of the recent optimism about a strong rebound in a ” V ” to the global economy. This, in turn, extended support to the precious metal’s perceived safe haven status, but a goodish pick-up-in-the-US-dollar demand capped any significant gains.
The us dollar was back in demand on Thursday, allowing the key and the USD Index to stage a significant jump from the lowest level since mid-March. Most of the USD, turned out to be one of the key factors is that the hero of the investors to place all aggressive bullish bets around the dollar-denominated commodity.
Even from a technical point of view, the night of the fall dragged the yellow metal, below support marked by a short-term ascending trend-channel extending from mid-April. Therefore, the recovery attempt can still be considered a sale at the risk of fizzling quickly.
Market participants look forward to the first Weekly Jobless claims data from the US, which could influence the price in dollars of the dynamics and produce some of the short-term trading opportunities. The key is to focus, however, will be the Friday of the release of the closely watched U.S. monthly jobs report, popularly known as centre of coordination.