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GOLD overview 03.06.2021

Gold falls on lower U.S. jobless claims.

Gold falling strongly today after initial claims for state unemployment benefits fell below 400,000 last week for the first time since the COVID-19 pandemic started more than a year ago. This is pointing to a strengthening labour market and boosting the dollar – leading to the wide scale closing of the previously initiated gold longs. Gold is expected to move downwards over the next six to 12 months on expectation Fed will start to move toward hiking interest rates – in response to the heartening US economy. Focus now turns to key U.S. non-farm payroll numbers due on Friday – with better than expected number expected to drive gold price further down.

Next support to watch – 1870.00

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