Gold Price Prediction – Prices Form 3rd Doji Day of the Week Following Weaker GDP

Gold prices attempted to move higher in tandem with silver but were rejected from higher levels forming a doji day. The dollar moved lower, helping to buoy gold prices, but US yields rose following more substantial than expected jobless claims data. Jobless claims totaled 847,000 for the week, the expectations had been for first-time claims to total 875,000. Continuing claims showed a decrease, falling by 203,000 to 4.77 million, a new pandemic-era low. Q4 GDP in the US came in weaker than expected.

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Technical analysis

Gold prices were nearly unchanged, forming another doji day which is a sign of indecision. This is the third doji day of the week.  Prices remain below resistance near the 10-day moving average at 1,849. Support is seen near the January lows at 1,802. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum has decelerated as the MACD (moving average convergence divergence) histogram prints in the red with a flat trajectory, which points to consolidation.

Q4 GDP Rises Less than Expected

US Q4 gross domestic product grew at a 4% annual rate, according to the Commerce Department. Expectations were for Q4 GDP to rise by 4.4%. Despite a strong rebound in the second half of last year, the economy contracted 3.5% in 2020, measured year over year, the first decline since 2008. Measured from the fourth quarter to the same quarter a year earlier, the economy shrank 2.5%