Prices Ease But Remain Supported By Weaker US Economic Outlook

Gold prices have eased during APAC trading today after moving higher since Friday. After reacting to Wednesday’s US data, bullion in the end looked through it. Prices are down 0.5% to $2011.50/oz just off the intraday low of $2008.14. They reached a high of $2021.08 earlier. The USD has provided headwinds with the index higher again today.

• The uptrend in gold continues to dominate. Wednesday’s high of $2032.07 broke through resistance of $2031.88 and opened up $2034 as the next level to watch.
• Despite some stabilisation in bullion today, it has been able to hold above the $2000 mark, as this week’s US data has generally disappointed and supported expectations of a less hawkish Fed. The key release is Friday’s March payrolls, which are expected to post a 235k rise with the unemployment rate staying at 3.6%.
• The only US data of note today are the jobless claims and Challenger job cuts for March. The Fed’s Bullard will discuss the economic outlook later.