Gold Price Prediction – Prices Climb as Yields Drop Following Jobless Claims Data
Gold prices moved higher despite a rising dollar as the decline in U.S. yields buoyed the yellow metal. The dollar rebounded from session lows. U.S. Yields moved lower following an unexpected rise in U.S. Jobless Claims. Stronger than expected U.S. Existing home sales as well as a record high on the median home price failed to buoy the interest rate markets.
Gold prices moved higher on Thursday but remain rangebound. Support is seen near the 20-day moving average at 1,798. Resistance is seen near the 50-day moving average at 1,836. The consolidation is tightening and building energy. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is decelerating. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation. Despite the sideways price action, gold continues to trade in a short-term uptrend.
According to the U.S. Labor Department weekly jobless claims unexpectedly rose last week. Initial jobless claims totaled 419,000 for the week ended July 17, well above the 350,000 Expected and more than the upwardly revised 368,000 from