Gold Prices Rise Despite Rally in the Greenback

Key Insights

• Gold prices continued to rise
• The dollar rallied
• U.S. Treasury yields were lower

Gold prices moved higher on Thursday despite a stronger dollar. Inflation data came out in line with expectations as the Commerce Department reported that Personal Consumption Expenditures rose to a 40-year high. Jobless claims rose back above the 200K level after hitting the last week was revised to a 52-year low.

Initial jobless claims rose by 14,000 to 202,000 last week, the Labor Department reported, up from the week before when they reached a revised 188,000. The four-week moving average decreased to 208,500 from a revised 212,000. Continuing claims, a proxy for the total number of people receiving payments, moved slightly down to 1.3 million for March 19 from the previous week.

Technical Analysis

Gold moved higher but remained rangebound. Prices slipped through resistance which is now short-term support at 1,936. Resistance is seen near the March highs at 2,070. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.

The medium-term momentum has turned negative. The MACD histogram prints in negative territory with a decelerating trajectory pointing to lower gold prices.