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  • Gold failed to capitalize on its early uptick to the $1720-22 region.
  • A sharp intraday turnaround dragged the commodity to $1694 area.
  • Weaker USD, softer risk tone helped limit deeper losses for the metal.

Gold crashed to fresh daily lows, around the $1694 region in the last hour, albeit quickly bounced back above the $1700 round-figure mark.

The bearish pressure surrounding the US dollar remained unabated on Thursday and turned out to be one of the key factors that provided some intraday lift to the dollar-denominated commodity.

Bulls, however, struggled to capitalize on the uptick and seemed rather unimpressed by a mildly softer tone around the equity markets, which tends to underpin the precious metal’s safe-haven demand.

The commodity witnessed a dramatic turnaround in the last hour after data released from the US showed that Initial Jobless Claims rose 3.839 million in the week running from April 19 to April 25.

The reading marked a slower pace of layoffs, though sums up to about 30 million job losses in a month and a half and illustrated the extent of economic damage caused by the coronavirus pandemic.

Apart from this, the sudden fall over the past hour or so lacked any obvious catalyst and thus, lacked any strong follow-through, instead was quickly bought into ahead of the $1690 support.

Despite the intraday volatile swings, the commodity remains confined well within this week’s broader trading range. This warrants some caution before placing any aggressive directional bets.

Technical levels to watch