Summary:
- Gold has added to recent gains and made another 2017 high
- Large rise in initial jobless claims caused spike higher
- Price higher by more than $50 in last 2 weeks
The breakout rally seen in Gold has shown little sign of abating today with the precious metal rallying to its highest level of the year after a huge jump was seen in the US initial jobless claims release. The market traded close to the $1350 handle shortly after the release and is looking set to post another impressive weekly gain. After breaking above a failed triple top pattern last month, price has taken off and soared another $50.
After a breaking a failed triple top pattern, Gold prices have rallied sharply. Source: xStation
The number of people claiming unemployment benefits surged to 298k – the largest jump since 2012 – from 236k seen previously. A rise in this number is seen as negative for the US economy and whilst the jump may be attributed to the fallout from hurricane Harvey, it has nonetheless provoked a positive move in Gold.
Gold prices soared to 2017 highs shortly after the big miss in initial jobless claims. Source: xStation
Looking ahead, the weekly chart looks fairly bullish for Gold and whilst there may be a temptation to try and fade this move there has been very little by the sign of exhaustion. Price is now firmly above the high seen on the night of the US election and there’s little by the way of prior swing levels until 1375.
There’s little by the way of prior swing level for possible resistance until 1375. Source: xStation