Gold Price Prediction – Prices Break Out To 8-Year Highs as US Yields EaseJob layoffs dropped in May
Gold prices broke out closing above the August 2012 highs putting short term support near the former highs at 1,791. This was a fresh 8-year high. Gold was buoyed as US treasury prices moved higher and yields continued to dip. The dollar whipsawed and closed unchanged but this failed to generate headwinds for the yellow metal. The Labor Department reported today that firings slowed considerably in May.
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Gold prices rallied on Tuesday breaking out to fresh 8-year highs. Prices are now poised to test target resistance near the August 2011 highs at $1,890. Support is seen near the 10-day moving average at 1,775 and additional support is seen near the 50-day moving average at 1,731. Short term momentum is positive as the fast stochastic recently generated a crossover buy signal. The current reading on the fast stochastic is 91, above the overbought trigger level of 80 which could foreshadow a correction. Medium-term momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.
JOLTS Report Show Layoffs Fell in May
Job Openings and Labor Turnover Survey, a poll of employers, showed a low number of layoffs eased in May. The number of Americans dismissed from their jobs fell to match levels recorded before the coronavirus pandemic and related shutdowns caused widespread layoffs. In May, 1.8 million workers were laid off or otherwise discharged from their jobs, according to the Labor Department. That was down from 7.7 million in April and 11.5 million in March. May’s dismissals were in line with the numbers reported in January and February before the pandemic shut swaths of the U.S. economy.