Gold Price Prediction – Prices Rebound Following Robust Quit Rate
Gold prices rebounded following Monday’s selloff. The rally in the yellow metal came as the dollar whipsawed and formed a doji day. U.S. yields were mixed, as the 10-year continued to move higher but the 2-year stagnated. The movement in the yield curve was further steepening. The November JOLTs report, showed that the quit rate continue to move higher as workers looked for new and better-paying opportunities. In Europe, Germany reported November retail sales, which rose by 0.6% compared to expectations that they would rise by 0.3%.
Gold prices rebounded on Tuesday after dropping sharply on Monday. Prices recaptured resistance which is now support seen near the 10-day moving average at $1,804. Additional resistance is seen near a downward sloping trend line at $1,867. The 10-day moving average has crossed above the 50-day moving average which means that a short-term uptrend is now in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
The Quit Rate Continue to Rise
U.S. workers quit their jobs in record numbers in November. The quits level surged to 4.53 million for the month, according to the Labor Departments JOLTs report. That represented an 8.9% increase from October and broke September’s high-water mark of 4.36 million. As a percentage of the workforce, the quits rate of 3% matched September’s mark.