Gold Price Prediction – Prices Slide Following Strong Jobs Data
Gold prices moved lower coming off all-time highs, following a stronger than expected US employment report. The dollar moved higher as US yields backed up paving the way for a lower price for the yellow metal. For the week, gold prices rose 2.5% following last week’s 3.5% increase.
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Technical analysis
Gold prices moved lower after hitting an all-time intra-day high forming an outside day which is considered a reversal pattern. An outside day is a higher high a lower low and a lower close. Support is seen near the 10-day moving average at 1,992. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is negative to neutral as the MACD (moving average convergence divergence) histogram prints in the red with a flattening trajectory which points to consolidation.
US Jobs Rise More than Expected
US non-farm payrolls rose 1.8 million jobs last month, better than the 1.48 million expected, and the unemployment rate fell more than expected to 10.2% from 11.1%. The pace of gains decelerated from the 4.8 million jobs added in June, and the 2.7 million in May. Average hourly earnings increased +0.2% versus expectations were 0.5% and -1.3% in June. Average hourly earnings, year over year rose +4.8% versus expectations that they would rise +4.2%.
This article was originally posted on FX Empire
