- Gold trades just 0.19% higher on Friday despite poor data from the US.
- The price has stalled ahead of a key trendline shown on the chart below.
Fundamental backdrop
The jobs market in the US is in a state of chaos at the moment with another record print for weekly jobless claims and a record matching 701K non-farm payroll number this afternoon. It has to be said the data was for March but missed out the last two weeks of initial jobless claims due to the cut off period. This means that the true numbers may be reflected in next months reading.
There is still a massive amount of central bank and government stimulus around. Germany are increasing support for small to medium-size business but are yet to finalise arrangements with some reports suggesting the figure could be as high as EUR 500 billion.
In terms of COVID-19 news, the rate of change in Italy and Spain seems to be slowing as the world passes the 1million mark. The US has surpassed 200 thousand cases to become the worlds worst affected nation. What is interesting is the fact that and Larry Kudlow (Director of the United States National Economic Council) said that the US would not reopen until the US are satisfied on the health side.
Technical picture (4-hour and weekly chart)
The chart below is showing that the gold price is attempting to break the red trendline on the chart. this level seems significant but not as significant as the USD 1644.54 per ounce wave high marked by the blue line. A break of these two levels will tell us lots about the macro environment and how badly investors are rushing for safe-haven assets. There are many plus points for the precious metal as it continues to trade above the moving averages on the 4-hour, daily and weekly charts. The RSI is also above the 50 mid-line on all of these timeframes too.
For next week the blue and the black support and resistance zones will be key. In these times of economic uncertainty, the blue level at USD 1644.54 is the more important one. If this breaks then we could look forward to the test of the USD 1700 zone.
Weekly chart
The weekly chart illustrates the highs and consolidation zone we are currently in. The red line is the next key area that could be tested close to USD 1800. Under that, USD 1533.00 is the support zone but the 4-hour chart shows USD 1500 has already been rejected. These are much longer term level but just need to be looked at from time to time for reference purposes.
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.