- Gold refreshed intraday low while extending the previous day’s pullback from $1,855.
- Off in China and Japan join Wall Street’s sluggish moves to test the bulls.
- US data, Fed Chair Powell’s cautious optimism earlier weighed on the risks.
- Absence of major Asian traders can extend the recent consolidation of gains.
Gold drops to $1,839.30 in its latest declines, down 0.12% intraday, during Thursday’s Asian session. In doing so, the yellow metal drops for the first time in the last five days as markets turn risk-averse even as Asian majors are on a holiday.
The downbeat mood could have taken clues from Wednesday’s performance of Wall Street as the equity bulls seem tired of waiting for the US President Joe Biden’s $1.9 trillion covid relief stimulus despite recent progress. Also helped bears could be the weaker than expected Consumer Price Index (CPI) data for January as well as disappointing details that hint the economy is grinding lower.
It’s worth mentioning that Fed Chair Jerome Powell repeated his script showing readiness to act. Though, his comments suggesting the US employment sector weakness seem to have soured the sentiment.
Earlier on Thursday, news that US President Biden and his Chinese counterpart Xi Jinping will talk over the phone for the first time caused market players to remain cautious. However, a lack of major data/events and the absence of Chinese/Japanese players offered little entertainment.
That said, S&P 500 Futures drops below 3,900 while extending pullback from the record top, marked the previous day.
Looking forward, a light calendar will keep gold players searching for fresh risks, while also analyzing the US dollar moves, for fresh impulse.
Technical analysis
Failures to provide a daily closing beyond 21-day EMA, currently around $1,842, keep gold sellers hopeful.
Share
