Gold Price Prediction – Prices Slip as Dollar Rallies on Strong Claims DataUS yields continue to rise
Gold prices edged lower, slipping closer to support as the dollar rebounded sharply and US yields surged. The strong upward momentum in US yields is putting downward pressure on gold prices. The Atlanta Federal Reserve’s GDPNow tracker of activity points to an 8.9% gain for gross domestic product amid increases in consumption and investment. With a new administration come in in 2-weeks, the market is getting ahead of a potential stimulus deal. Weekly jobless claims edged lower which was also a welcome sign.
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Gold prices moved lower, sliding toward trend line support. Support is near the 10-day moving average near 1,902. Resistance is seen near the January highs at 1,959. The 10-day moving average crossed above the 50-day moving average, which means a medium-term uptrend is now in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 73, down from 88 which reflects decelerating positive momentum.. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram prints in the black with a positive trajectory, which points to higher prices.
Jobless Claims Slip
Weekly claims totaled 787,000 for the week ended January 2, according to the Labor Department reported Thursday. That was less than estimates of 815,000 and a slight decrease from the upwardly revised total of 790,000 for the previous week. The report also showed a drop of 126,000 in continuing claims, taking the total down to 5.07 million.