Gold Price Prediction – Prices Rise as Yields Decline Ahead of Jobs Report

Gold tests resistance as yield decline
David Becker
Depositphotos_210863758_s-2019

Gold prices moved higher attempting to break out above the October highs on the last day of the month. This comes ahead of Friday’s jobs report. Expectations are for a number south of 100K due to the strike at GM. The EU reported preliminary Q3 GDP that came slightly less than expectations. EU inflation also fell to the lowest level in the past 2-years. The dollar moved lower on Thursday despite stronger than expected GDP data and ADP private payrolls which were both released on Wednesday.

Trade gold with FXTM

 

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

90% of retail CFD accounts lose money

 

Technical Analysis

Gold prices moved higher attempting to test resistance levels near the October highs at 1,519. Support on the yellow metal is seen near the 10-day moving average at 1,495. Additional support is seen near the 100-day moving average at 1,468. Short term momentum whipsawed into positive territory as the fast stochastic generated a crossover buy signal. The fast stochastic is printing in the middle of the neutral range. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with an upward sloping trajectory that points to higher prices.

EU GDP and Inflation Were Soft

Eurozone preliminary Q3 GDP came in slightly less than expected at 1.1% year over year vs. 1.2% in Q2.  Headline inflation fell as expected to 0.7% year over year which was the smallest since November 2016.  These readings show that the eurozone is experiencing slowing growth and falling inflation.   Recent PMI readings suggest that the economy is stabilizing, but it is clearly still far from improving.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US