2 Major Reasons for a Dip in the Gold, Sellers Looming!
Dave Green • 1 min read
Today on 9th Feb, the precious metal Gold traded sideways, maintaining a narrow range of $1243 – 1237 in the European session. It remained supported mostly due to the developments around the globe that are causing uncertainties in the market, fueling demand for the haven assets, including Gold, Silver, and the Japanese Yen.
Besides that, the investors continued to speculate over the next interest rate hike by the Federal Reserve. The elections in different areas of the European Union remained another reason for the uncertainty in the market.
However, the Gold fell sharply in the New York session to trade at $1233. Well, one of the major reasons behind the recent dip was a favorable jobless claims from the U.S. The report released by the U.S. Department of Labor announced the number of individuals registering for initial jobless claims in the previous week was declined by 12,000 to a seasonally adjusted 234,000 from the preceding week’s total of 246,000.
Based upon fundamentals, the investors boosted the demand for U.S Dollar and the negatively correlated precious metal dipped on a shift in demands.
At the present, the Gold is trading at $1232 after breaking below a major support level of $1237. Well, if you are looking to add a sell position now, I am afraid we're too late. The Gold is trading in an oversold territory and it's likely to retrace back up to $1236 areas before showing us further selling.