Declining investor confidence in gold since the U.S. House of Representatives passed a resolution to extend the U.S. debt ceiling until the date of May 19. And showed data issued by the U.S. Department of Labor that the number of applicants for unemployment benefits for the first time fell by 5,000 to 330,000. Index was also “Markets industrial flash” PMI above expectations.
Frankly, the price action yesterday was not a surprise at all, especially when you consider the fact that the upward movement faced strong resistance at the level of 1695. As I mentioned in the previous analysis, I think that a pair of gold / U.S. dollar will remain descending order upward movement in some way to pull prices back above 1705USD/troy an ounce of gold.