Gold Price Prediction – Gold Consolidates Ahead of Payroll Report

Gold prices were stable ahead of the US jobs report. The dollar was buoyed and has been supported all week. The dollar rebound seems to have occurred in tandem with the increase in US volatility which has been rising all week. German factory orders increased in July rising by 2.8% after the June was revised up to a 28.8% jump rather than 27.9%

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Technical analysis

Gold prices remained steady at the tail end of the week ahead of the long US holiday weekend. Prices pushed through short-term support is seen near the 10-day moving average at 1,945, which is now seen as short-term resistance. Target support is seen near the 50-day moving average at 1,899. Additional resistance is seen near the August highs at 2,075. Medium-term negative momentum is accelerating as the MACD histogram is printing in the red with a falling trajectory which points to lower prices. Short-term momentum has turned negative after recently turning positive which is a sign of consolidation. The relative strength index has turned lower reflecting decelerating positive momentum.

The US Payroll Report Will Drive Gold

The unemployment report is expected to show an increase of 1.35 million non-farm payrolls, down from 1.76 million in July.  The unemployment rate is expected to slip to 9.8%. The question is whether traders will be okay with the slowing rate of unemployment.