Gold Price Prediction – Prices Edge Higher Following Soft US Jobless Claims

Gold prices rebounded slightly as the dollar declined and US yields moved lower. The rally in the greenback is experiencing resistance following a softer than expected US jobless claims report. The Philly Fed Manufacturing Index also came in softer than expected weighing on the greenback which paved the way for higher gold prices.

Trade gold with FXTM

Technical analysis

Gold prices rebounded slightly following Wednesday 3% decline. Prices were unable to recapture support near the 10-day moving average at 1,964. Target support is seen near the 50-day moving average at 1,859. Medium-term momentum remains negative as the MACD histogram is printing in the red with a sliding trajectory which points to lower prices. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

US Jobless Claims Rise More than Expected

Initial jobless claims rose more than expected according to a report from the Labor Department on Thursday. The BLS reported that initial jobless claims for the week ended August 15 came in at 1.106 million. Expectations were for a total of 923,000. Initial claims for the previous week were also revised higher by 8,000 to 971,000. Last week marked the first time in 21 weeks that initial claims came in below 1 million. Continuing claims declined by 636,000 to 14.844 million in the week ending August 8.