GOLD price falls below $2,000 on USD rebound and jobless claims.
The price of gold has experienced a significant decline below the key psychological level of 
2,000.00, following a rebound in the USD Index. This recovery has been fueled by hawkish remarks made by Federal Reserve policymakers. Furthermore, weekly jobless claims data, released on Thursday, has solidified signs of a weakening labor market. Specifically, the price of gold (XAU/USD) has broken down from its previously range-bound structure at around 2,005.00 during the early European session. As a result of a prolonged consolidation, this precious metal has fallen below the psychological support level of 2,000.00.
Investors are now focusing their attention on the US Dollar Index (DXY) as Federal Reserve (Fed) policymakers continue to promote further rate hikes and dismiss concerns regarding a recession in the US economy. Additionally, the weekly jobless claims data has revealed an increase in claims to 245K, exceeding both the consensus estimate and the previous release of 240K for the week ending April 14.
From a technical perspective, gold has rebounded once again from the 50% Fibonacci level within a bearish channel, leading traders to anticipate short-term continuation. However, if we look at the higher timeframes, the price action remains bullish on both the H4 and daily timeframes. Consequently, it would not be surprising if gold breaks again for a long setup, in which case it could potentially reach a value of 2040.
2,000.00, following a rebound in the USD Index. This recovery has been fueled by hawkish remarks made by Federal Reserve policymakers. Furthermore, weekly jobless claims data, released on Thursday, has solidified signs of a weakening labor market. Specifically, the price of gold (XAU/USD) has broken down from its previously range-bound structure at around 2,005.00 during the early European session. As a result of a prolonged consolidation, this precious metal has fallen below the psychological support level of 2,000.00.Investors are now focusing their attention on the US Dollar Index (DXY) as Federal Reserve (Fed) policymakers continue to promote further rate hikes and dismiss concerns regarding a recession in the US economy. Additionally, the weekly jobless claims data has revealed an increase in claims to 245K, exceeding both the consensus estimate and the previous release of 240K for the week ending April 14.
From a technical perspective, gold has rebounded once again from the 50% Fibonacci level within a bearish channel, leading traders to anticipate short-term continuation. However, if we look at the higher timeframes, the price action remains bullish on both the H4 and daily timeframes. Consequently, it would not be surprising if gold breaks again for a long setup, in which case it could potentially reach a value of 2040.
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