CM: Gold extends 7-week high as US claims reach 500,000
FXstreet.com (Barcelona) - The precious metal extended its incessant rally-up on Thursday, hitting a new 7-week high AT 1,234.85, last flirted in early July, after a new jump toĦĦin US jobless claims, this time reaching the dreaded 500,000 mark, posed enormous pressure on the US dollar. At present, the price ca be found at 1,233.30, a $4.00 rise or 0.31% compared to the previous close.
A filtering US labour market continues to expand fears on a doble-dip recession, as US investors get dissuaded from supporting its own currency. Besides, growing concerns over sovereigns looking alternative diversification strategies in detriment of the world's reserve note helps little to the shine of the USD.
Today's bullish attach reaffirms the immaculate uptrend from lows at $1,157.00, as gold accumulates a meritorious 14 out of 16 days on the rise. Over this period, gains totaled over $80.00 or 6.50%.
Fan Yang at CMS Forex shares its take, writing "Gold has been on fire, and rallying without any significant corrections. In the 1H chart, it is breaking above a narrow wedge/triangle pattern. A swing projection targets 1243.30 area. The RSI in the short-term is above 50, and breaking above 60 for a second time since rallying from below 40, so it is somewhat bullish, although if it does not go above the August 17th high, there is a bearish divergence".
