Gold eases after 3.2% advance, US jobless claims eyed for fresh signal
Spot gold eased from $1740 high (posted after three-day 3.2% pre-Fed rally) in early Thursday, as traders booked profits.
The yellow metal accelerated higher after Fed presented its economic projections which point to long post-pandemic recovery and keeping low interest rates.
Traders turn focus towards US weekly jobless claims which are expected to drop further but millions will remain unemployed that will continue to weigh on US labor sector and keep investors in the safety.
Near-term action remains supported by rising and thickening daily cloud but flat daily momentum and overbought stochastic warn.
Bulls show initial signs of stall on approach to key resistance zone between $1745 and $1750 which repeatedly limited repeatedly limited upside action in past three weeks.
Firm break here is needed to revive bulls for eventual break from two-months range and unmask targets at $1795/$1800 (2012 high / psychological barrier).
Conversely, loss of support at $1717 (converged 10/30DMA’s) would weaken near-term structure and signal top.
Res: 1740; 1745; 1750; 1765
Sup: 1726; 1723; 1717; 1698