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Gold Testing Key Support at 1243.52


XAUUSD : Daily Chart

Gold is currently testing the key support at 1243.52 after a huge decline amid the expectations that if the US economy continues to grow with the same pace Fed might increase the interest rate soon.

However the commodity paused its losses and is steady near the key support at 1243.52 after the US Department of Labor showed that the advance figure for seasonally adjusted initial claims increased by 11K to 315K from the previous revised reading of 304K. The 4 week moving average which is considered as a better gauge for the job trends increased by 750 to 304K from the previous revised reading of 303250.

On the daily chart of Gold above we can see that the commodity is also facing resistance from a falling resistance trend line which shows that the gains are limited. The 50 day SMA is contracting towards the 100 day SMA and might cross below it signaling a downtrend continuation so the trend remains bearish. Now investors will be looking at Retail Sales and Consumer Sentiment data releasing tomorrow for further guidance on the growth of US economy.The commodity may decline below the current key support level ahead of the release.