Gold Price Prediction – Prices Slip on Strong GDP Figures
Jobless claims fall
Gold prices moved lower as the dollar consolidated. U.S. Treasury yields moved higher on Thursday following a decline in jobless claims and an expansion in GDP. Initial unemployment claims, fell by 13,000 last week to 553,000, according to the Labor Department. The previous week’s figure was revised up to 566,000. The latest reading marked the third straight week jobless claims were below 600,000. The four-week moving average, was 611,750, also a pandemic low.
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Technical analysis
Gold prices eased on Thursday, pushing back through support levels. Resistance is seen near former support near the 10-day moving average at 1,779. Target resistance seen near the Fibonacci retracement level of 38.2%, which is seen near 1,828. Support is seen near the 50-day moving average at 1,745. The 10-day moving average has crossed above the 50-day moving average which means that a short-term uptrend is now in place. Short-term momentum is negative but consolidating as the fast stochastic started to consolidate. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.
U.S. GDP Rose by More than 6%
Economic activity boomed to start 2021. Gross domestic product jumped 6.4% for the first three months of the year annually. Outside of the reopening-fueled third-quarter surge last year, it was the best period for GDP since the third quarter of 2003. Expectations had been for GDP to increase by 6.5%.
