Gold Price Prediction for October 6, 2017

Gold prices were under pressure on Thursday as the dollar gained traction following a stronger than expected U.S. jobless claims report. A stronger dollar is negative for gold which is quoted in greenbacks. Prices are sliding through support near the 100-day moving average at 1,272, and are poised to test August 7, lows at 1,249. Resistance above the 100-day moving average is seen near the 10-day moving average at 1,283.

Jobless Claims Fell More than Expected

U.S. initial jobless claims fell 12k to 260 in the September 30 week after climbing 12k to 272k in the prior week, after dropping 21k to 260k in the September 16 week. Expectations were for a decline to 265k. That brought the 4-week moving average down to 268.25k from 277.75k. Continuing claims rose 2k to 1,938k in the September 21 week, after tumbling 43k to 1,936k in the prior week, following a 44k jump to 1,979k in the September 9 week.