Gold struggles to maintain position above $2000 amid US labor market resilience
2023.11.24 04:31
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Gold’s attempt to stay above the coveted $2000 mark faltered today as trading volumes remained thin due to the Thanksgiving holiday. The precious metal, often sought after as a safe haven, showed a brief rise in early trading but faced challenges in sustaining gains above this psychological threshold.
The metal’s inability to hold its ground comes against the backdrop of an appreciating dollar, which gained strength following unexpected jobless claims data released on Wednesday. These figures suggested a more robust US labor market than anticipated, diminishing the allure of gold as a hedge against economic uncertainty.
Investors are also weighing the impact of recent geopolitical developments. A ceasefire that has been instrumental in facilitating aid and prisoner exchanges is seen as a significant diplomatic step. However, it has left gold’s traditional role as a safe-haven asset somewhat in limbo. The metal now encounters resistance near the $2010 level, with support found at $1985. Additional support levels are marked by the 200-day simple moving average (SMA) and the critical $1937 level, which traders are closely monitoring for potential shifts in momentum.
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