Gold edged lower on Thursday, pressured by a firmer dollar on the back of upbeat U.S. unemployment data and as some investors sold to redeem profits after bullion's recent advance. Spot gold was down 0.24 percent at $1,251.76 ounce, retreating from an overnight peak of $1,258.96. The most active U.S. gold futures for June delivery settled up $4.8, or 0.38 percent, at $1,253.30 per ounce after climbing as much as 1 percent to $1,260.90.
The dollar index extended gains after data showed new applications for U.S. unemployment benefits last week recorded their biggest drop in nearly two years. Those claims, however, will have no bearing on March U.S. non-farm payrolls data on Friday, which analysts say could be key for short-term direction of the gold market. Investors were also cautious ahead of the meeting between U.S. President Donald Trump and Chinese President Xi Jinping due later on Thursday, the first between the world's two most powerful leaders.
On technical front, the MACD momentum column continued to contract, about to form a dead cross at highs. On the 4-hour chart, the K-line had been falling for 3 straight days, indicating a bearish tone. Investors shall be cautious, with support and resistance at $1,248 and $1,255 respectively.
Spot silver dropped 0.44 percent to $18.19 an ounce. Technically, the MACD momentum column continued to contract, about to form a dead cross at highs - a bearish tone for silver. In the medium term, the white metal will form a M-shape, a sigh for persistent fall, if Friday’s non-farm payroll report weighed on precious metals and pulled prices below the 200-day moving average. We maintain our view that the resistance and support can be found at $18.45 and $18 respectively.

 
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Huang Han

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