Gold Price Prediction – Prices Edge Higher as the Greenback Declined

Gold prices attempted to move higher but could not gain traction and formed a doji day. The dollar edged lower as the 10-year treasury yield rose. The U.S. Yield curve flattened as riskier assets gained traction. News that the 3^rd dose of the Pzifer vaccine would protect against the Omnicon buoyed stock prices. The Jobs Opening and Labor turnover report issued by the Labor Department showed that the number of job quitters declined and the number of job openings increased.

Technical Analysis

Gold prices edged higher but formed a doji day which is a sign of indecision. Support is seen near the 10-day moving average at 1,782. Additional support on the yellow metal is seen near the September lows at 1,721. Resistance is seen near the 50-day moving average at 1,792. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum has decelerated as the MACD histogram is printing in negative territory with a rising trajectory which points to consolidation.

Jobs Quitter Declined

The JOLTS report showed that Job quitters declined by 4.7%, falling to 4.16 million from 4.36 million. The rate as a share of the workforce fell from 3% to 2.8%. While the quits rate dropped, the level of job openings accelerated to just below its all-time high. That number totaled 11.03 million, an increase of 4.1% as the rate rose to 6.9% from 6.7%.