Gold Price Prediction – Prices Consolidate Ahead of Jackson Hole

Gold price moved sideways on Thursday, forming a doji day. The dollar edged higher and yields remain buoyed ahead of Friday’s Jackson Hole Wyoming event. Stronger than expected U.S. Jobless claims along with a robust GDP price deflator kept gold prices capped.

Tecnical analysis

Gold prices edged higher bouncing near short-term support at the 10-day moving average near 1,788. Resistance on the yellow metal is seen near the 200-day moving average at 1,810. Prices rae overbought as the fast stochastic is printing a reading of 86, above the overbought trigger level of 80 which could foreshadow a correction.  Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This buy signal occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

Jobless Claims Rise Slightly

Unemployment claims edged up to 353,000 last week from a revised 349,000 a week earlier. The four-week moving average, fell to 366,500 last week, a new pandemic low. Continuing claims for regular state programs, declined to pandemic lows. About 2.86 million people were collecting unemployment benefits through state programs in the week ended Augugust. 14, down slightly from 2.87 million a week earlier and the lowest level since March 2020.