Gold prices fall as U.S. weekly jobless claims fall to March lows

Gold faced a substantial decline of -0.98%, closing at 58,822, largely due to the pressure exerted by a tightening labour market. Notably, the U.S. Labor Department reported a surprise drop in weekly jobless claims by 20,000 to 201,000, indicating a robust labour market that exceeded expectations. Federal Reserve Chair Jerome Powell underscored the need for more labour market slack before considering any shift in monetary policy, emphasizing the maintenance of restrictive interest rates to combat inflation. 

Swiss exports surged by 7.3% in August, driven by increased deliveries to India and China, compensating for reduced supplies to Turkey. This was particularly significant as Switzerland serves as a major global hub for gold refining and transit, with China and India being pivotal consumer markets with sensitivity to gold prices and seasonal demand patterns. Shipments to India, gearing up for the October-November festival season, tripled, while exports to China increased by 1%. 

From a technical perspective, the gold market experienced long liquidation, marked by a -9.4% decrease in open interest to 7,463 and a substantial price drop of -583 rupees. Key support levels are identified at 58,565 and 58,310, while resistance is anticipated at 59,195, with the potential for prices to test at 59,570.

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