Gold made a strong comeback on Thursday, rising to $24 as speculators continued to drive the early recovery momentum amidst a prolonged weakening of the US dollar and low bond yields in the US. The unexpected interest rate hike by the Bank of Canada (BoC) has reduced optimism about the Fed's rate increase next week after US initial jobless claims rose to the highest level since October 2021 at 261K last week.
The weak employment data in the US has strengthened expectations that the Federal Reserve will pause its tightening cycle. The probability of the Fed pausing its rate hike in June is now at 75%, up from about 65% before the release of the US data.
The market's psychology will play a crucial role in determining the price of gold if there are no significant economic data releases from the US. This happens when markets assess lower-than-expected inflation data from China. The pressure to reduce the price of gold in the largest consumer nation is bringing bad news for gold optimists.
The weak employment data in the US has strengthened expectations that the Federal Reserve will pause its tightening cycle. The probability of the Fed pausing its rate hike in June is now at 75%, up from about 65% before the release of the US data.
The market's psychology will play a crucial role in determining the price of gold if there are no significant economic data releases from the US. This happens when markets assess lower-than-expected inflation data from China. The pressure to reduce the price of gold in the largest consumer nation is bringing bad news for gold optimists.
✅Buy order in the $1,944-$1,947 price zone when the support zone is approached.
✖️Stoploss: $1,940.
✅Sell the $1,985-$1,982 range when the price hits the resistance area.
✖️Stoploss: $1,990.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!