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May 06, 2023
A quick look at yesterday: Gold dipped as low as $2,007 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session ($2,058) with Gold closing the day at $2,025 per ounce.
Data for United States Average Hourly Earnings published yesterday at 12:30 UTC came out at 0.5%, beating projections of 0.3% and showing improvement over the preceding figure of 0.3%. Data for United States Non Farm Payrolls published yesterday at 12:30 UTC came out at 253,000, beating projections of 180,000 and showing improvement over the preceding figure of 165,000. Highly important Unemployment Rate data from United States beat analyst expectations of 3.6 with a reading of 3.4.
Gold made an initial break below its 21 day Simple Moving Average at $2,014, a possible indication of a forthcoming negative trend. After descending below strong Fibonacci support at $2,039.4, market bears have earmarked $1,952.8 as the next downside target. Gold's upper Bollinger Band® is at $2,047.79 which indicates a further downward move may follow. On the other hand, note that CME Gold could begin to recover as it approaches significant support, now $23.6 away from $2,001.3. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting Gold to extend its recent losses.
Gold hit a significant low of $1,623.3 around 7 months ago, but has since recovered 26.64%.
