Gold – remains weighed down by USD

Will USD continue to drag on gold?

The dollar may be trading a little softer today but another strong day on Thursday is keeping the pressure on gold which has been weighed down by it over the last couple of weeks. It remains above $1,280, a major support level, a break of which could be the catalyst for another significant decline, with $1,260 being notable support below.

The dollar is always vulnerable to the release of the US jobs report so today could bring volatility for gold also. Gold has also been weighed down by improved sentiment in the markets so a strong jobs report today could see $1,280 come under real pressure.

Gold Daily Chart

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.