Gold prices moved higher on Friday following a softer than expected US payroll report. The dollar eased slightly as US yields moved down. For the week
Gold prices moved higher on Friday following a softer than expected US payroll report. The dollar eased slightly as US yields moved down. For the week gold prices increased by approximately 0.6%. This comes following a wild rise where prices surged mid-week in the wake of the retaliation by Iran on an Iraqi military base.
Trade gold with FXTM
Gold prices finished the week in the black climbing approximately 0,.6%. Target resistance is now seen near the January highs at 1,611. Short term support is seen near the 10-day moving average at 1,538. Weekly momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-week moving average minus the 26-week moving average) crosses above the MACD signal line (the 9-week moving average of the MACD line). The MACD histogram is printing in the black with a rising trajectory which points to higher prices.
The RSI moved above the overbought trigger level of 70, pointing to accelerating positive momentum, but also a potential correction. The fast stochastic is also accelerating higher but is short of the 80 overbought trigger level which means there is still room for prices to climb.
US Nonfarm payrolls increased 145,000, less than the 160,000 expected, while the unemployment rate held steady at 3.5%. The jobless rate met expectations for staying at a 50-year low. Revisions to the October and November counts brought those two months down by 14,000 as well. The 266,000 initial estimates for November came down 10,000 while October’s fell from 156,000 to 152,000.
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.