Gold Price Prediction – Prices Slip on Treasury Yield Gains

Gold prices moved lower on Thursday ahead of Friday’s employment report from the U.S. Department of Labor. The dollar moved sideways, consolidating, which failed to provide any direction for the yellow metal. U.S. Yields rose, generating headwinds for gold, following a slightly better than expected decline in U.S. Jobless claims.

Technical analysis

Gold prices moved lower but continue to trade in a tight range following Wednesday’s failed attempt at higher prices. Prices are experiencing a tighter and tighter range. Resistance is seen near the 10-day moving average at 1,809. Support is seen near the 100-day moving average at 1,804. Momentum is neutral as the fast stochastic continues to flip-flop and generate buy and sell signals.  Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a downward sloping trajectory which points to consolidation.

Jobless Claims Fall

Initial jobless claims edged lower last week while continuing claims continue to trend downward, reflecting an improving jobs picture. According to the Labor Department, first-time filings dipped to 385,000 for the week ended July 31, a decline of 14,000 from the previous week. The four-week moving average of claims, was little changed at 394,000. Initial jobless claims seemed to have stalled around the 400,000 mark, dipping as low at 370,000 and rising to 430,000 in the last two months.