Gold looks to snap back-to-back weekly declines with quick change of pace

Gold is up 1% today, nearing $2,370 now as buyers are looking to build on the jump higher yesterday. The precious metal was bid as the dollar faltered after the weaker US weekly jobless claims data. And that is providing a sudden change of pace for gold after having slumped towards the end of April. It is now looking to snap back-to-back weekly drops with a near 3% gain this week currently.

But amid the move higher here, there is some trendline resistance around $2,372.50 coming up. That will be one to watch before the $2,400 mark comes into play again ahead of key US data next week.

Much like equities, gold has enjoyed a stellar start to the new year only to get checked back a little in April. The retracement isn’t one that is too significant though as gold still ended the month higher. And while the structural view for gold is still largely bullish, I still can’t help but feel that we might be overdue a more significant pullback first.

But for now, the charts are still the best guide in determining any conviction. And gold buyers are certainly not interested in taking a breather just yet.

This article was written by Justin Low at www.forexlive.com.