Gold Price Prediction for August 7, 2017

Gold prices moved lower slicing through support near the 10-day moving average following the stronger than expected U.S. non-farm payroll report.  Prices are now poised to test target support near the 20-day moving average at 1,246. Resistance is seen near the weekly highs at 1,275. Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the black with a declining trajectory which points to a potential crossover sell signal.

Payrolls Rose More than Expected

U.S. nonfarm payrolls rose 209k in July with employee hourly earnings rising 0.3%. Expectations were for a 190K increase. The June 222k job gain was revised up to 231k, but May’s 152k increase was bumped down to 145. There was no revision to June’s 0.2% earnings rise. The unemployment rate was dipped to 4.3% versus 4.4%. The labor force jumped 349k following the prior 361k gain, while household employment increased 345k from 245k. The workweek was steady at 34.5.