Gold slips ahead of payroll report
Gold prices moved lower as the dollar rebounded as riskier assets came under pressure. The dollar was buoyed following a better than expected US jobless claims report. This comes ahead of Friday US jobs report. Gold prices have not acted as a safe-haven and as stocks sold off, gold failed to rally.
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Gold prices headed south as the dollar rebounded. Prices pushed through short-term support is seen near the 10-day moving average at 1,945, which is now seen as short-term resistance. Target support is seen near the 50-day moving average at 1,899. Additional resistance is seen near the August highs at 2,075. Medium-term negative momentum is accelerating as the MACD histogram is printing in the red with a falling trajectory which points to lower prices. Short-term momentum has turned negative after recently turning positive which is a sign of consolidation. The relative strength index has turned lower reflecting decelerating positive momentum.
US Jobless claims rose by 881,000 last week, better than expected. Economists had been looking for a total of 950,000. Continuing claims fell sharply, dropping by 1.24 million to 13.254 million. The decline in the initial jobless claims rate was due to a change in the seasonal adjustment. According to the Labor Department claims would have remained elevated and unchanged using the old calculation.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.