Spot gold broke below a near-term uptrend on Thursday and subsequent technical selling saw it dip under the $1780 level.
But gold remains within this week’s ranges amid caution ahead of key risk events, including US inflation and the Fed.
Spot gold (XAU/USD) prices have been under pressure in recent trade, with the precious metal dipping from the mid-$1780s to current levels below the $1780 mark over the past few hours. Spot prices are now down about 0.3% on the day, with the selling mainly driven by technical factors and perhaps some dollar strength as opposed to anything happening in US bond markets.
Spot gold recently broke below a short-term uptrend that had been in play since this time last week, and the associated technical selling was enough to push prices under $1780, though not enough to test earlier weekly lows around $1772. The dollar has also seen a modest pick up on Thursday, with the DXY able to recover back above 96.00, though recent upside momentum has stalled in recent trade despite the strong initial weekly jobless claims number since 1969. A stronger US dollar makes dollar-denominated spot gold more expensive for purchase by the holders of foreign currencies, thus reducing its demand.