Gold prices edged slightly lower on Thursday, but losses were expected to remain restricted as sentiment on the greenback remained susceptible despite optimistic U.S. data and a hawkish outlook by the Federal Reserve.
The U.S. Department of Labor reported on Thursday that initial jobless claims decreased by 1,000 to 230,000 in the week ending January 27. Analysts had expected jobless claims to rise to 238,000 last week.
The greenback briefly rebounded after the Fed, at the conclusion of its policy meeting on Wednesday, signalled its confidence about inflation and growth in the U.S. The Fed said that inflation is likely to rise this year, increasing expectations for further interest rate hikes under incoming central bank head Jerome Powell.
Gold daily chart has formed "Ascending broadening wedge” pattern. The last few sessions seems bullish in trend after retesting the channel’s support slope line. As predefined in yesterday’s report, a long-term bullish momentum is indicated in the upcoming session as the 50-day moving average crossovers the 100-day moving average in the technical chart. The upside rally could test $1355-1365(30625-30875) levels in upcoming weeks. Alternatively, if the market breaks below the support level at $1340(30250), then sellers might take control over the same. Resistance holds at $1365(30875).
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