Gold Price Forecast: XAU/USD Retreats From $1,930 As US Jobless Claims Remain Slightly Above Consensus

Gold price (XAU/USD) has retreated after a solid recovery to nearly $1,930.00 in the early New York session. The precious metal has faced selling pressure, although the weekly jobless claims ending June 16 have landed marginally higher than expectations. The US Department of Labor reported that first-time jobless claims were 264K, similar to their prior release, while the street anticipated a figure of 260K.

S&P500 futures have recovered some losses. However, a weak opening is broadly expected. Investors have underpinned the risk-aversion theme as more rate hikes by the Federal Reserve (Fed) could accelerate fears of a recession in the United States.

Jobless claims have remained higher than expectations for the fourth time. Higher jobless claims indicate that labor market conditions are critically losing their appeal. Easing US labor market conditions could propel the chances of only one interest rate hike by year-end.

The US Dollar Index (DXY) has rebounded to near day’s high around 102.16 as investors are providing more value to hawkish testimony by Fed chair Jerome Powell against dovish commentary by Atlanta Fed President Raphael Bostic and Chicago Fed Bank President Austan Goolsbee. The 10-year US Treasury yields have climbed above 3.75%.

Gold Technical Analysis

Gold Price wants to deliver a break below the Descending Triangle chart pattern formed on a two-hour scale. The downward-sloping trendline of the aforementioned chart pattern is plotted from June 02 high at $1,983.00, while the horizontal support is placed from May 30 low at $1,932.12. The 200-period Exponential Moving Average (EMA) at $1,953.62 acts as a barricade for the Gold bulls. Horizontal resistance is plotted from May 05 low around $2,000.00.

The Relative Strength Index (RSI) (14) oscillates in the bearish range of 20.00-40.00, indicating that the downside momentum has been triggered.

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.