Gold Price Prediction – Gold Forms Doji Day withing Bear Flag Pattern

Gold prices whipsawed and initially moved lower but rebounded into the close of the trading session.  The dollar was firmer against the yen and slightly stronger against the euro which weighed on yellow metal prices. Interest rates moved higher following a robust US Job openings and layoffs report. Stronger yields spilled over into the greenback as the US 10-year moved toward the 3% level.

Technical Analysis

Gold prices whipsawed forming a doji day where the open and the close were near the same level reflecting indecision.  Prices are forming a bear flag pattern which is a pause that refreshes lower.  Resistance is seen near the 50-day moving average at 1,214.  Support is seen near the 20-day moving average at 1,195. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the black with a flat trajectory which points to consolidation.

The Dollar Rises on Robust JOLTS

July JOLTS hit new high at 6.939 million job openings. Over the month, hires and separations were little changed at 5.7 million and 5.5 million, respectively. the quits rate was little changed at 2.4% and the layoffs and discharges rate were unchanged at 1.1%. An elevated quit rate combine with a high openings level lifted US yields.

UK Data is Solid

UK data is coming out strong. The robust PMI services and growth figures and solid weekly earnings helped to lift sterling which helped buoy the yellow metal. When you include the bonus payments the weekly wages figures increased by nearly 3% in the current quarter ending July on a year over year basis which was stronger than expected and match the highs for 2018 seen in March. The claimant count increased by 8.7k after an upward revision to 10.2k in July.  It has risen by an average of 10.2k this year after being virtually flat in the same 2018 period.  Employment growth has also slowed, but remain at elevated levels.