Technical Analysis

GOLD Price Analysis – April 05, 2023

By LonghornFX Technical Analysis
Apr 5, 20233 min

Daily Price Outlook

Gold prices soared to their highest in over a year on Tuesday, finally breaking through and maintaining a position above the $2,000 mark as the US Dollar and bond yields fell. The weaker greenback and additional US data contributed to the yellow metal's rally from a compressed formation. At the time of writing, gold is trading at $2,020, up 1.8%.

US Job Openings Drop to Lowest Level in Nearly Two Years

US job openings in February dropped to their lowest level in nearly two years, accompanied by a continued decline in factory orders. Job openings, an indicator of labor demand, fell from 632,000 to 9.9 million at the end of February, the lowest since May 2021, according to the monthly Job Openings and Labor Turnover Survey (JOLTS) report. "The largest decline in openings was in professional and business services, followed by healthcare. Accommodation and food services saw openings fall back to mid-2022 levels. Construction job openings increased despite the sector's interest rate sensitivity," analysts at ANZ Bank stated.

Factory Orders Decline for Second Consecutive Month

US factory orders declined for a second consecutive month, down 0.7% in February following a 2.1% drop in January and a 1.7% increase in December. This data comes after the Institute for Supply Management (ISM) reported yesterday that its Manufacturing PMI fell to 46.3 last month, the lowest since May 2020, from 47.7 in February.

Persistent Inflation Concerns Expected to Fuel Hawkish Fed Sentiment

In part, the data echoed last week's PCE data, the Federal Reserve's preferred inflation measure, which had mixed results. While both headline and core figures were slightly lower than anticipated, the super core accelerated for a second consecutive month to 4.63% YoY, its highest level since October. "This is not the direction the Fed desires, and we expect the hawkish tilt in Fed comments to persist," analysts at Brown Brothers Harriman explained.

 Gold Price Chart - Source: Tradingview

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1959            2000

1934            2016

1918            2040

Pivot Point: 1975

Gold (XAU/USD) – Technical Outlook

The gold price experienced a significant rally, surpassing our initial target of $2,000.00 and breaking through the recently recorded high of $2,009.78, confirming the continuation of the dominant bullish trend for upcoming sessions.

Our next target is set at $2,040.00, as we anticipate further increases in the short term and intraday basis.

It's important to note that maintaining a position above $2,009.78 is a prerequisite for sustaining the bullish trend.


    * AUD/USD Price Analysis – April 05, 2023

    * EUR/USD Price Analysis – April 05, 2023

    * GOLD Price Analysis – March 31, 2023



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