- Even with escalating tensions between Israel and Iran, gold prices have dipped below the $2,400 mark.
- Investors are closely watching the upcoming Initial Jobless Claims data for further insights into the labor market
Gold has slipped below the $2,400 mark even as geopolitical tensions possibly escalate, with Israel bracing for potential retaliation from Iran. US intelligence indicates the response could come late Thursday or Friday.
Market attention is also directed towards the upcoming Initial Jobless Claims data, due on Thursday, which investors hope will provide further information about the labor market.
Perhaps in an attempt to calm the volatility seen at the beginning of the week, San Francisco Fed President Mary Daly said Tuesday that “none of the labor market indicators she looks at are flashing red at present …”.
Perhaps adding to the downward pressure on gold, major Asian central banks appear to have paused their physical gold buying sprees. Reports from the World Gold Council indicate that China has abstained from buying the precious metal for the third consecutive month.
Technically, if the XAU/USD continues its downward trajectory, the next support level could lie at the 50-day and 100-day Simple Moving Average. Further declines could test the May 3 low of $2,277.
