Gold Price Prediction – Prices Consolidate Despite More Job Openings

Gold prices moved lower on as the greenback moved higher. The upward movement in the greenback came despite lower U.S. Treasury yields which dipped following a larger than expected jobs opening report released by the U.S. Labor Department of Tuesday. The U.S. trade deficit narrowed in April to $68.9 billion buoyed by American exports. The April deficit, the gap between what America buys from abroad and what it sells to other countries, was down 8.2% from a record March deficit of $75 billion.

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Technical analysis

Gold prices declined on Tuesday, but prices made a higher high and a higher low. Short-term resistance is seen near the 10-day moving average at 1,896 .Target resistance is seen near the May highs at 1,916. The 10-day moving average crossed above the 50-day moving average which shows that a short-term trend is now in place. Short-term momentum continues to whipsaw after turning positive its reversed and turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative MACD (moving average convergence divergence) as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Job Openings Surge

Job openings in April soared to a record 9.3 million. The standard set in April was well above the 8.3 million in March according to the Labor Department’s Job Openings and Labor Turnover Survey. Markets had been looking for a JOLTS number around 8.18 million. The total openings for the month was just below the total considered unemployed. Job availability surged 32.7% in leisure and hospitality, the sector hurt most by the pandemic lockdowns.