Spot gold moved sharply downward in the Asian session on Friday (April 5), and it is currently trading near 2271.

The latest U.S. initial jobless claims announced yesterday increased more than expected, resulting in a V-shaped reversal in the U.S. dollar index. The gold price fluctuated widely, weakening in the Asian session, later rebounding to a new all-time high of 2306 due to a weaker dollar, and then declining again at the end of the day with the rise in the dollar index. The XAUUSD pair ultimately closed lower, ending the previous 7 consecutive gains. This bearish doji star is not a good signal for gold bulls. As the non-farm payrolls data will be released tonight, the gold price may plummet on possible strong data. And many investors may take profits at such a high of 2300. There are selling pressures, so we should not chase the short-term uptrend in the near future as the price is likely to plunge.

Previously, Israel disregarded the truce agreement proposed by the UN Security Council and launched airstrikes on the Iranian Embassy and the Gaza Strip, aggravating the Middle East crisis further. Yesterday, some geopolitically bearish news was released. For example, Iran retaliated against Israel and the United States also put pressure on Israel. Biden urged Netanyahu to instruct the Israeli negotiators to reach an agreement with Hamas as soon as possible. Now, the United States does not want to be involved in the Middle East crisis. If Israel continues to ignore the truce agreement, perhaps it will be on the opposite side of the world, and I don't think this will happen.

Data: the number of U.S. initial jobless claims was 221,000, expected higher than the expected 214,000 and the previous reading of 212,000. The U.S. February trade deficit was US$68.9 billion, compared with the expected deficit of 67.3 billion and the previous deficit of 67.6 billion.

News: According to the statement from the Iraqi armed militia Islamic Resistance Organization on April 4, the organization launched a drone attack on the day against the Israeli northern city of Haifa, southeast of Ramat David Airbase. U.S. President Joe Biden said through a call with Israeli Prime Minister Benjamin Netanyahu on April 4 that U.S. policy on Gaza would depend on the U.S. assessment of Israel's measures to protect civilians in Gaza. Israel needs to announce and implement "a series of concrete, solid and assessable measures" to reduce harm from the Israeli military operation to civilians in the Gaza Strip, alleviate humanitarian suffering in the Gaza Strip, and guarantee the safety of staff delivering aid, Biden said. The U.S. will assess Israel's "immediate actions in light of these measures" and develop Gaza-related policies based on that assessment. Biden urged Netanyahu to instruct Israeli negotiators to reach an agreement with Hamas as soon as possible to secure the release of detainees.

Today's focuses: U.S. non-farm payrolls data, unemployment data, labor force participation rate data and average hourly wages for March.

Yesterday, the gold price mainly fluctuated. It shortly strengthened and rose to 2305 twice, but moved down at night weighed on by a strong dollar. Ultimately the XUAUUSD pair closed lower, ending 7 consecutive gains. With the bearish doji star, the pair may have peaked in at this phrase.

On the technical side, gold prices were fiercely volatile, with the double tops near 2305. Gold bulls remained strong but were more cautious, considering today's non-farm payrolls data. In the 1-hour timeframe, the price was relatively stable during the day-time but became more volatile in the night session. The MACD death cross widened. The gold price declined below the 60-day moving average, with the potential to move down further. It will keep fluctuating today until the non-farm payrolls data is released. In the 4-hour chart, there is an obvious bearish divergence. The MACD line is crossing below the signal line in the overbought area and the death cross is widening. Once the important support level is broken, the previously accumulated bearish momentum will push gold prices lower. In the daily timeframe, yesterday's bear candle ended the 7 consecutive gains, and the MACD golden cross still exists. It is bullish but the gold has been overbought, so we need to be cautious when going long at the moment. Today's reference trading range is 2238-2310, where aggressive traders can buy low and sell high.

Trading direction: Short

Entry price: 2310

Target price: 2238

Stop loss: 2320

Support: 2250.000, 2223.000

Resistance: 2305.000, 2320.000