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Gold : BreakDown Following Unemployment Claims Report, Bearish Trend Confirmed

XAUUSD : Daily Chart

Gold declining today breaking the key support levels at 1287.23 and 1280.10. The commodity extended losses after the Unemployment Claims report came out which showed that the number of people applying for unemployment benefits fell below 300K for the third time in 5 weeks. 

The number of initial jobless claims fell by 14K to 298K in the week ending August 16 beating the economist’s expectation for a decrease by 10K. On the daily chart, Gold seems like trading within a falling channel and therefore the next support it may find from the falling support trend line of the channel. If it continues to decline the commodity will give a bearish confirmation however if it again rise back, we can infer that the commodity is still following sideways pattern.

XAUUSD : Weekly Chart

However if looking at the weekly chart, there are still some big moves to come. The commodity is following a consolidation triangle pattern and currently trading near the apex of the triangle just about to breakout or breakdown. I think tomorrow’s Yellen Speech would be the key driver for Gold. The trend seems downtrend and the commodity should decline breaking the support trend line of the triangle however the next key support after declining is at 1208.73.