President Trump contract COVID-19
Gold prices moved lower as the dollar gained traction as riskier assets moved lower. The dollar increased despite a decline in US yields. This came following a softer than expected rise in US non-farm payrolls. The decline in riskier assets was generated by the news that President Trump contracted COVID-19.
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Gold prices edged lower by was able to hold support near the 10-day moving average at 1,887. Resistance is seen near the 50-day moving average at 1,945. The 10-day moving average crossed through the 50-day moving average which means a short-term downtrend is in place. Medium-term momentum is negative rising as the MACD (moving average convergence divergence) line is about to generate a crossover buy signal. Short-term momentum has turned positive as the fast stochastic recently generated a crossover buy signal. The current reading on the fast stochastic is 39, rebound from the oversold trigger level of 20 which could foreshadow a correction.
Non-farm payrolls rose by 661,000 jobs in September, according to the Labor Department. This compared to expectations that job gains would increase by 850,000. While disappointing, there was a silver lining. The unemployment rate fell to 7.9% in September from 8.4% the prior month. Though the jobless rate is down sharply from a pandemic high of near 15% in April, the drop reflected an increase in permanent layoffs and more people leaving the labor force.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.