Gold Price Prediction for September 8, 2017

Gold prices surged higher as the dollar lost ground following the ECB meeting were the central bank failed to discuss quantitative easing. A large rise in jobless claims also weighed on the dollar paving the way for higher gold prices.  The yellow metal closed at 1-year highs as is poised to test the July 2016 highs at 1,371.  Support is seen near the 10-day moving average at 1,322.  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.

Jobless Claims Rose

U.S. initial jobless claims jumped 62k to 298k in the September 2 week, after rising 1k to 236k in the August 26 week. It’s the highest since 2012, but the surge is a function of Hurricane Harvey. That boosted the 4-week moving average to 250.25k from 236.75k. Continuing claims fell 5k to 1,940k in the week ended August 26 after dropping 9k to 1,945k previously.