The yellow metal is currently losing its footing on Thursday following the release of a string of optimistic US economic reports, which supported a weak dollar, but caution ahead of Friday’s U.S. inflation data is expected to limit the greenback’s gains.
The number of people who filed for unemployment assistance in the U.S. last week fell more than expected, official data showed on Thursday.
The number of individuals filing for initial jobless benefits in the week ending October 6 declined by 15,000 to a seasonally adjusted 243,000 from the previous week’s revised total of 258,000, the U.S. Department of Labor said.
Analysts expected jobless claims to fall by 7,000 to 251,000 last week.
The greenback took flight following the US Department of Labor report, which revealed that initial jobless claims fell more than expected to 243,000 last week
In addition, a separate report showed that producer prices increased 0.4% in September, in line with expectations. Core producer prices, which exclude food and energy also rose 0.4%, beating expectations for a 0.2% uptick.
Gold trades in a price channel according to the Bloomberg 1H Chart.
If there is a continuation of the bullish momentum, the commodity could break out above 1298.99 and possibly extend more gains toward the 1304.70.
In the case of a bearish scenario, Gold could fall back toward the 1286.12 and extend losses through the 1278.96.