Gold Price Predicition – Prices Drop as Dollar Rises on Risk off Sentiment

Gold prices tumbled on Wednesday as riskier assets declined but US yields and the dollar moved higher. The labor department reported that job openings were down in the first week of December leading to a risk-off day. Later in the US session, 49 states Attorney Generals and the FTC sued Facebook leading to a broad selloff in riskier assets.

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Technical analysis

Gold prices tumbled on Wednesday, testing support near the 10-day moving average at 1,826. Resistance is seen near the 50-day moving average at 1,877.  Short-term momentum is decelerating as the fast stochastic approaches the overbought trigger level. Medium-term momentum has turned positive but is decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a decelerating trajectory, which points to consolidation.

Job Openings Ease

The number of job openings in the U.S. edged down slightly in the first week of December, a sign of a softening labor market amid an upsurge in coronavirus infections and ebbing fiscal support for households. There were an average of 10.7 million job openings posted each day on online sites across the U.S. this month, down slightly from November’s 10.9 million, according to data from job-search site ZipRecruiter.