Good morning, traders.

On Thursday, the major focus will remain on the US jobless claims, which is a weekly data and is in highlights these days due to COVID-19 led lockdown. Claims are expected to increase again, which may weigh on the US dollar and crude oil prices. Alongside this, the US dollar can gain support over weaker claims data and vice versa.

During Thursday’s Asian session, the safe haven metal prices were flashing green and rose to $1,755 handles mainly because traders continue to measure the economic damage from the coronavirus pandemic, which indicates a global recession.

At press time, the safe haven metal prices are currently trading at 1,753.60 and consolidating in the range between 1,739.00 and 1,755.55. As we know, GOLD traders were depressed during the previous session due to broad-based US dollar strength. Gold futures prices up by 0.33% at $1,745.70 as the yellow metal attempted to claw back its losses from the previous session.

The International Monetary Fund’s (IMF) gave warning about a global slowdown, due to the fresh sharp surge in the coronavirus (COVID-19) deaths, which gave support to the US dollar during the previous day, recently released virus data adding to the broad risk-off sentiment.

At the coronavirus front, UK’s death losses have recently decreased by 761 against 778 the previous day. On the other hand, the highest single-day rise by 2,371 to 30,817 in the death toll in the United States keeps the risk-off sentiment in the market. The reason behind the risk-off market sentiment could also be the IMF’s comments that the economic growth of Asia will grind to a halt for the first time in 60 years in the wake of coronavirus.

As a result, the market’s risk-tone remains heavy with shares in Asia and US stocks registering losses on the day while the 10-year US Treasury yields seesaw around 0.65% by press time.

On the flip side, most of the companies reported depressive figures during the tough season, and the US Commerce Department said retail sales in March fell a record 8.7%. While, the continued economic turbulence will increase gold’s demand for investors, as it is viewed as a safe haven.

Looking forward, the coronavirus headlines will likely keep the USD in demand, which normally leaves a negative effect on Gold prices due to the inverse relations between the two. Whereas, today’s US Jobless Claims will be the key to watch. The weekly employment indicator has recently surged to worrisome levels, and hence any more upside beyond the previous 6606K, expected 5100K, could increase the risk-off tone in the market.

Daily Support and Resistance
S1 1676.08
S2 1696.77
S3 1706.31
Pivot Point 1717.46
R1 1727
R2 1738.15
R3 1758.84

On Thursday, gold is likely to find support around 1,708, which can keep it in a bullish trend, but the bearish breakout of this level can drive selling until the next support level of 1,692. An immediate resistance prevails around 1,738 and 1,747. Overall, trading bias remains bullish for gold today.

Good luck!