Gold Price Prediction – Prices Ease as Yields Rise

Gold prices moved lower on Thursday as the dollar consolidated and US yields moved higher. This rise in yields came despite a softer than expected US jobless claims report. Prices continue to trade in a very tight range while momentum has consolidated.

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Technical analysis

Gold prices moved lower afte4r testing resistance near the 50-day moving average at 1,857. Prices pushed through support near the 10-day moving average at 1,832. Additional support is an upward sloping trend line that comes in near 1,788. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD has whipsawed and is now flat to neutral.

Jobless Claims

Jobless claims totaled 793,000 last week as declining Covid-19 cases provided little relief for the jobs market. The week’s total ended February 6 was above the 760,000 forecasts from economists but a slight decrease from the previous week’s upwardly revised total of 812,000. Continuing claims for benefits, which run a week behind the weekly number, also declined, falling 145,000 to 4.54 million, the lowest total since March 21, 2020.