Gold Price Prediction – Prices Rise as Trend Points to Higher Prices
Gold prices rebounded on Thursday despite a rising dollar as the US yields edge higher. Gold has been unable to gain haven status, but gold volatility remains elevated and will continue to generate volatile price action. Riskier assets whipsawed following a larger than expected rise in US jobless claims which more than doubled from the record levels posted in the previous week.
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Technical Analysis
Gold prices rebounded on Thursday recapturing support which was former resistance near the 50-day moving average at 1,592. Target resistance on the yellow metal is seen near the March highs at 1,700.
A short term trend is now positive. The 10-day moving average has crossed above the 50-day moving average which means that a short-term trend is now in place. Short term momentum has turned positive after just turning negative. fast stochastic generated a crossover buy signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram also generated a crossover buy signal, but the trajectory is now flattening which reflects consolidation.
Jobless Claims Hit Record
Unemployment claims soared to 6.6 million last week, the most in history, and more double the2.8-million reported in the prior week. This is a terrifying number and the Labor Department does not likely have the requisite number of employees to process these claims. In looking at absolute unemployment unadjusted for state population, California came out highest with more than 878,000 workers filing for benefits, up 692,000 from the prior week’s print of 186,000 claims. That’s a more than 350% increase.
