The precious yellow metal continues to remain highly volatile after another wild roller-coaster ride on Thursday viewed the market bulls (once again) taking a short trip (to the upside) and post an intraday high of $1,500 before staging another course correction and slipped -1% to an intraday low of $1,463, and is currently holding above the crucial the bullish foundations of $1,450-60.
Meanwhile, the US Dollar Index (USDXY) surged to multi-year highs and is back to levels when President Donald Trump’s inauguration, as the coronavirus pandemic continues to threaten to cripple economic activity and prompting investors to sell assets to keep their money in cash.
U.S. data overnight showed new U.S. claims for unemployment benefits climbed by 70,000 to 281,000 last week (previous, 211,000) as the coronavirus pandemic shuttered businesses and left people out of work, the Labor Department said Thursday.
It was the highest level since Sept. 2, 2017, when they totalled 299,000.
The claims numbers are expected to jump even more this week as several states reported that their unemployment claims websites had crashed with so many people trying to file at the same time.
Turning back to the technical standpoint, presently, the intraday outlook remains neutral due to the high volatility and extended swings we are currently experiencing.
Still note, due to the given high volatility, trading will continue to come at a “high risk” given to the uncertainty of the market conditions and therefore will expect these massive swings in gold price movement to continue.
However, a break of the bullish foundations of $1,450-60 may expose the region of $1,400-20, with the primary resistance viewed from $1,500-15. Reassess from there.