Gold Dips Below $2,400 Amid Geopolitical Tensions and Market Uncertainty

Key Points:

• Gold prices fall below $2,400 despite rising geopolitical tensions between Israel and Iran.
• Investors focus on upcoming U.S. Initial Jobless Claims data for labor market insights.
• Central banks in Asia, including China, have halted gold purchases, adding to market pressure.
• Key technical support levels may determine gold’s near-term movement.

Gold prices have slipped beneath the $2,400 threshold, even as geopolitical tensions rise between Israel and Iran. Despite warnings of potential retaliation from Iran, which could occur as early as late Thursday or Friday, the precious metal has seen a temporary dip.

Market participants are now turning their attention to the forthcoming U.S. Initial Jobless Claims data, set for release on Thursday, in hopes of gaining further clarity on the labor market’s condition. San Francisco Fed President Mary Daly attempted to ease market concerns earlier in the week, stating that none of the labor market indicators she monitors are currently signaling significant danger.

Contributing to the downward pressure on gold, major Asian central banks, including China, appear to have paused their physical gold purchases. According to reports from the World Gold Council, China has refrained from buying the metal for the third consecutive month.

On the technical front, if the XAU/USD pair continues its decline, the next support level may be found at the 50-day and 100-day Simple Moving Averages. Should the downward trend persist, prices could test the May 3 low of $2,277.