Advertisement
Advertisement

Gold Price Prediction – Prices Rebound Following Payroll Report Miss

By:
David Becker
Published: Jun 4, 2021, 18:54 UTC

The dollar dropped

Gold Price Prediction – Prices Rebound Following Payroll Report Miss

Gold prices rallied on Friday, reversing Thursday’s slide. The weaker than expected U.S. employment report offset, the better than expected ADP private payroll number that was announced Thursday. The dollar reversed its upward movement putting upward pressure on the yellow metal. U.S. yields declined and have started to break down, which help buoy gold and weigh on the greenback.

Trade gold with FXTM

Regulated By:FCA, CySEC , FSCA, FSCM
Headquarters:Cyprus
Foundation Year:2011
Min Deposit:$10
82% of retail CFD accounts lose money
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:30 (CySEC ), 1:500 (FSCA), 1:3000 (FSCM)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, , Local Deposit, , Maestro, Visa, Mastercard
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Mastercard, , , PerfectMoney, Maestro, Visa
Products:Currencies, Commodities, Indices, Stocks
Trading Platforms:MT4, MT5, ,
Trading Desk Type:No dealing desk, ECN, Market Maker
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices rose sharply. The uptrend is still in place as the 10-day moving average recently crossed above the 200-day moving average.Target resistance is seen near the 10-day moving average at 1,895. Short-term momentum is reversing after turning negative as the fast stochastic generated a crossover sell signal, and is poised to generate a crossover buy signal. Medium-term momentum has turned negative MACD (moving average convergence divergence) as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Employment was Softer than Expected

Job creation disappointed again in May, as nonfarm payrolls rose 559,000 but still short of lofty expectations, of 671,000. The government report followed Thursday’s private payroll report which showed a larger than expected gain.The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate of 5.9%. An alternative measure of unemployment that includes discouraged workers edged lower to 10.2%.

About the Author

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.

Did you find this article useful?

Advertisement