Posted 4th October 2023

Gold Price News: Gold Seeking Support Near $1,820 After Week’s Drop

gold seeking support after weeks drop

The gold price witnessed a decline for the seventh consecutive day yesterday.

Following the breach of the support level at $1,890, bearish momentum intensified, propelling the gold price to plummet swiftly from $1,930 to $1,820 within a few days.

Low volatility in early September has created the potential for larger price movements. Overall, the technical analysis continues to indicate a bearish trend, although the support zone at $1,820 and oversold conditions could prompt a rebound.

gold 4 hour chart from kinesis exchange
Gold ($/g) – 4hour chart – from Kinesis Exchange

On the macroeconomic front, the August US JOLTS Job Openings data, released yesterday, came in at 9.61 million, beating forecasts of 8.80 million and underlining economic strength. The data bolstered the US dollar and pushed bond yields higher, challenging gold further. The bearish pressure on gold will likely persist until market clarity emerges regarding the peak of US interest rates.

Markets are now waiting for the other key US Job data: the ADP, which will be released later today, and, particularly, the US non-farm payrolls and the unemployment data due for release on Friday. Figures above expectations could increase the chances of one or more further rate hikes from the Federal Reserve, while signs of economic slowdown might lessen these chances, potentially benefiting gold.

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