Gold Price Prediction for September 4, 2017

Gold prices were buoyed as the dollar lost ground following the softer than expected U.S. jobs report. Prices hit fresh 10-month highs and are poised to test target resistance near the November 2016 highs at 1,327. Support is seen near the 10-day moving average at 1,302. Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.

U.S. Payrolls Were Weaker than expected

Non-farm payrolls increased by 156,000 jobs in August compared to expectations that jobs would grow by 180,000. June was revised down from 231,000 to 210,000 while July fell from the initially reported 209,000 to 189,000, according to the Bureau of Labor Statistics. The bulk of the 41K decline in revisions was mainly due to a 37K drop in government jobs. The unemployment rate was 4.4% in August compared to July’s jobless rate 4.3%. Average hourly earnings increased by 0.1% in August to an average of $26.39 an hour. Wages have risen 2.5% in the past year, unchanged from July.