Gold Price Prediction – Prices Rebound Near Support but Yields Continue to Rise
JOLTS report is stable
Gold prices rebounded from support levels after getting hammered on Monday. The 10-year US treasury yield continued to rise increasing by 2-basis points after surging on Monday. US yields rose following news that Pzifer announced that it had great success with its COVID-19 vaccine. The dollar edged lower, paving the way for higher gold prices. Job openings in the US were little changed in September according to the Labor Department.
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Technical analysis
Gold prices rebounded near support levels which coincides with the September lows at 1,848. Resistance is seen near the 10-day moving average at 1,897 and then the 50-day moving average at 1,909. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.
JOLTS Was Little Changed
The number of job openings was little changed at 6.4 million in September, according to the US Labor Department. Hires and total separations were little changed at 5.9 million and 4.7 million, respectively. Within separations, the quits rate was little changed at 2.1 percent while the layoffs and discharges rate decreased to a series low of 0.9 percent.
