Gold fell in Asia on Friday in holiday-thinned trade as many markets shut to mark Good Friday.
Gold futures on the COMEX division of the New York Mercantile Exchange fell slightly on Thursday as better-than-expected U.S. economic data put pressure on the precious metal.
The most active gold contract for April delivery fell 2.4 U.S. dollars, or 0.20 percent, to settle at 1,221.60 dollars per ounce.
Analysts say that comments this week from Fed officials hinting at an interest-rate increase as early as April would continue to support the dollar Friday and extend pressure on dollar-priced gold.
Gold was also put under pressure as a report released by the U.S. Department of Labor showed jobless claims coming in 6,000 higher at the 265,000 level during the week of March 19. Analysts noted that this is the 55th report in a row under the 300,000 level, which is the longest streak since 1973. This data is also slightly lower than Bloomberg's consensus of 268,000.
However, the precious metal was prevented from falling further as a report from the U.S. Department of Commerce showed durable goods orders falling by a worse-than-expected 2.8 percent in February, and the ex-transportation reading falling by 1.0 percent. Analysts believe this will likely diminish expectations for the gross domestic product report due out on Friday, and is a bearish signal for U.S. equities.
Gold prices ended the U.S. day session modestly weaker Thursday and hit a four-week low. Follow-through technical selling pressure was featured after strong losses posted Wednesday. The rally in the U.S. dollar index this week and the late-week downturn in crude oil prices were also bearish outside market elements working against the precious metals bulls. April Comex gold was last down $2.60 at $1,221.40 an ounce. May Comex silver was last down $0.082 at $15.19 an ounce.
There has been near-term technical damage inflicted in gold late this week, as a price uptrend on the daily bar chart has been negated, which has prompted chart-based selling. Silver bulls are also fading on a near-term technical basis.
Technically, April gold futures prices closed nearer the session high and hit a fresh four-week low today. Prices also closed at a bearish weekly low close today. Gold bulls still have the overall near-term technical advantage, but are fading badly and need to show fresh power soon. A nearly three-month-old uptrend on the daily bar chart was negated Wednesday. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,260.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at $1,226.00 and then at $1,230.00. First support is seen at today’s low of $1,211.20 and then at $1,200.00. Wyckoff’s Market Rating: 6.0
Reference: Kitco, Xinhua
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