Gold Price Prediction – Prices Rise Despite Smaller than Expected Rise in Jobless ClaimsUS yields continue to rise
Gold prices rallied as the dollar eased, despite US yields continuing to climb. This followed a smaller than expected rise in Jobless claims reported on Thursday by the Labor Department. Gold and silver prices are rebounding sharply after tumbling earlier in the week.
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Gold prices rebounded for a second consecutive trading session. Resistance is seen near the 10-day moving average at 1,992. Target support is seen near the 50-day moving average at 1,834. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal and continues to accelerate lower. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell 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 red with a declining trajectory which points to accelerating negative momentum.
US Jobless Claims Rise Less than Expected
US jobless claims rose less than 1 million for the first time since March 21 in a sign that the labor market is continuing its recovery. The total claims of 963,000 for the week ended August 8 were well below the estimate of 1.1 million expected. That represented a decline of 228,000 from the previous week’s total. Jobless claims had totaled above 1 million for 20 consecutive weeks. The last time the total was below that number was March 14, with 282,000, just as the pandemic declaration first hit. Continuing claims, which reflect the total number of claims that are longer than 2-weeks, totaled 15.5 million, down more than 600,000.