- Gold price remained under bearish pressure and moved below $1270 against the US Dollar.
- There is a crucial bearish trend line with resistance at $1267 on the hourly chart of XAU/USD.
- The US Initial Jobless Claims (April 21, 2017) released by the US Department of Labor posted an increase from the last revised reading of 243K to 257K.
Gold Price Technical Analysis
Gold price after trading as high as $1278 found resistance against the US Dollar, and moved down. There was a downside move, and the price declined close to the $1260 level.
The stated $1260 level is a major support area, and it successfully stopped the downside move. The price started consolidating and then moved higher towards $1270.
There was a move above the 23.6% Fib retracement level of the last decline from the $1278 high to $1260 low.
Gold Price Hourly Chart
However, the upside move was prevented by a crucial bearish trend line with resistance at $1267 on the hourly chart. The price is facing a major barrier near $1268-1270, and it looks like further gains won’t be easy.
Moreover, the 38.2% Fib retracement level of the last decline from the $1278 high to $1260 low is also acting as a resistance.
So, there is a high chance of a failure and a move down back towards the $1260 level in the near term.
The hourly RSI of gold price vs USD is currently below the 50 level.
US Initial Jobless Claims
Today in the US, the Initial Jobless Claims for the week ending April 22 was released by the US Department of Labor. The market was expecting a decline from the last reading 244K to 241K.
The actual result was on the lower side, as there was an increase to 257. The last reading was revised down from 244K to 243K.
The report stated that the “4-week moving average was 242,250, a decrease of 500 from the previous week’s revised average. The previous week’s average was revised down by 250 from 243,000 to 242,750“.
Overall, the trend is bearish for Gold price, and it would be interesting to see if it can hold the $1260 support or not in the near term.