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Gold erases gains as US jobless claims fell to three-week low

FXStreet (Mumbai) - Gold is back into the red, erasing the marginal gains witnessed ahead of the European Central Bank (ECB) press conference after the initial jobless claims in the US fell more than expected.

Gold now trades 0.30% lower at USD 1142.30/Oz, down from a high of USD 1148.40 hit just before the ECB press conference. The yellow metal declined after the US initial jobless claims dropped 10,000 to a three-week low of 278,000. Meanwhile, the four-week moving average of weekly jobless claims fell to its lowest level in 14 years.

Moreover, a strong weekly jobless claims data comes a day after the release of the strong ADP monthly jobs report and a day before the release of the monthly non-farm payrolls data in the US.

Gold Technical Levels

Gold has an immediate support at 1137 levels, while the immediate resistance is located at 1148 levels. The prices may fall sharply towards 1120 levels if the metal fails to sustain gains above 1137 levels.

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