Gold Price Prediction – Prices Slide as Yields Surge

Gold prices slipped lower and are poised to test target trend line support. The dollar whipsawed following but edged higher as riskier assets gained traction.   Yields were moved higher which put downward pressure on gold, and the yield curve continued to flatten. Jobless Claims rose less than expected.

Technical Analysis

Gold prices dropped through trend line support and is poised to test the November lows at 17,58. Resistance is seen near the 10-day moving average at 1,791. The 10-day moving average has crossed below the 50-day moving average which means at a short-term downtrend is in place. Medium-term momentum has turned negative as the MACD (moving average convergence divergence index) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic is printing a reading of 3, below the oversold trigger level of 20.

Jobless Claim Rise Less than Expected

Initial jobless claims for the week ended November 27 totaled 222,000, less than the 240,000 expected. That was higher than the 194,000 from the previous week, but that total, the lowest since 1969, was revised even further down from the initial 199,000 reported.