(Gold Price Network) – Gold price is still losing value today as well as this week. However, a twist might be around the corner and gold might continues its rally in 2014.
Gold opened the trading session for April 3rd at $1,290.48 touching the session’s high at $1,293.55 before continuing to slide ahead of the U.S. weekly jobless claims release and the ECB press conference. Gold price gained some lost ground on the seemingly bullish news to recover from the session’s low of $1,281.29 to be currently traded around the $1,285 level.
Gold price continues to consolidate below $1,300 per ounce level and $1,280 per ounce this week, as investors wait for employment reports to shed light on the current global economy strength. The U.S. nonfarm payrolls and weekly jobless claims are the main market focus to read the world strongest economy pace of recovery from the recession, and to anticipate the Fed next move monetary policy change.
Weekly jobless claims in the U.S. rose 16,000, around 6k higher than expected, to reach a total of 326,000 the week to Saturday. Moreover, the 4-week moving average of jobless claims rose by 250, to reach 319,500 for the week. The 4-week moving average is considered a more reliable measure as it straightens weekly volatility.
Investors await the release of monthly employment report due to release on Friday, hopefully expecting employment rate to drop from 6.7% to 6.6% and U.S. nonfarm payroll to increase to 200,000. Gold price correlates negatively with employment data. In other words, gold price increase if the data came below the expected levels, and vice versa.
Moreover, unemployment rate remained high in the Euro zone which leads to what’s called “protracted stagnation”, another word for recession. European Central Bank (ECB) President, Mario Draghi, said structural reforms are to be made all over Europe to improve employment outlook. That was a reason enough for the ECB to leave interest rates unchanged.
That leaves gold investors with no choice but to wait for the figures to confirm their expectations in order to decide the next move of gold price. Will the 2014 rally continues in April? Or another monthly decline is ahead?