The yellow metal extends falling at yesterday's session as well. The metal is trading below $1,100 for the first time in more than five years; gold prices are 42% down.
In the week ending July 18, advanced figures for seasonally adjusted initial claims came out at 255,000, showing a decrease of 26,000 compared to the previous week's unrevised level of 281,000. This is the lowest level for initial claims since November 24, 1973 when it was 233,000.
The precious metal is likely to reveal even greater weakness in coming days.
The world's largest gold ETF, SPDR Gold Trust holdings, faced a decline in output of 0.39% to 684.63 tons compared to the previous day.
MORGAN STANLEY: Gold could fall more than 20% from here. The metal can lose about $850.00.
Goldman Sachs expects gold prices to fall below $ 1,000 an ounce this year.
UBS: Gold prices are seen to be trading at $ 1,050.00 during the next three months.
Technical forecast: the yellow metal was trading at $1,091.00 during today's Asian session compared to Thursday's closing price of $1,090.00 . The weekly trading pattern is framed between $1,085.00 and $1,110.00. A close on either side will lead to more room to trade. In the weekly chart, the metal managed to hold the channel support trend line at $1,085.00. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.
In all time frames, the precious metal lost all moving averages. At yesterday's session, we advised against fresh selling. Selling accelerates only below $1,085.00.
The weekly support is found at $1,085.00, $1,068.00, and $1,060.00. A weekly close below $1,085.00 opens gate $1,068.00, $1,045.00, and $1,005.00. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below the 14-year ascending trend line in the monthly chart.
Intraday: The metal has been testing the lower band at $1,085.00 indicating further weakness in coming days. Fresh selling is advised below $1,085.00 with a target at $1,083.00. Panic is likely to trigger below $1,083.00 aiming for $1,080.00, $1,075.00, $1,073.00, and $1,069.00.
The material has been provided by InstaForex Company – www.instaforex.com