The precious metal was moved higher on Wednesday’s session led by greenback weakness. The intraday gains were erased after June JOLTS job openings were printed better than estimates.
JOLTS job openings review- The number of job openings was little changed at 5.6 million on the last business day of June, the U.S. Bureau of Labor Statistics reported on Wednesday.
“Prices race higher triggered by a weakening dollar as investor expectations of a US rate rise in the near future dissipate,” Sucden Financial said. “This sparked an across the board short covering rally in LME metals which gathered momentum as the day progressed.”
UBS on Wednesday (August 10) the author pointed out, the strong US data make gold under pressure, and to the recent pressure on the dollar bulls. CFTC data showed speculators week gold holdings of long positions to a record level of 96% ended August 2nd. Interestingly, some of its gains since the first was a month short positions offset by holdings. Friday’s payrolls report higher than expected, it may attract some extra shorts. Challenges facing the gold in the near future that a stronger dollar and recent strong US data led to improved sentiment, source: fx168financial network.
The price is trading at 1344.00 on Tokyo Thursday’s session with 0.20% gains.
Trading resistance seems at 1348.00, 1358.00-1360.00 and 1365.00-1367.00 levels.
Alternatively, support finds at 1338.00, 1333.00-1329.00 and 1310.00 levels.
What’s on today?
July China industrial production and retail sales and U.S initial jobless claims due today
July industrial production y/y: forecast 6.1% vs 6.2%
July retail sales y/y ; forecast 10.4% vs 10.6%
If the price settles above 1350.00 the bulls might challenge yesterday’s high initially. On the downside, support Zone finds between 1338.00 and 1340.00. The selling would accelerate below these to 1333.00-1330.00 levels.