Gold Price Prediction – Prices Trade Sideways as the Dollar Breaks Out
Gold prices consolidated as the dollar index broke out. Since gold is quoted in U.S. dollars a stronger greenback generally leads to lower gold prices. U.S. yields were unchanged and slightly lower following a dip in the number of job openings reported on Tuesday by the Department of Labor. The Quit Rate also hit a new 20-year high, as most employees left bars and restaurants.
Technical analysis
Gold prices edged higher despite a rally in the dollar. Resistance is seen near the 50-day moving average at 1,777. Support is seen near the 10-year moving average at 1,756. Short-term momentum is positive as the fast stochastic recently generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
The Quit Rate Surged
Workers left their jobs at a record pace in August, mainly from bars and restaurants. Quits hit a new series high going back to December 2000, as 4.3 million workers left their jobs. The quits rate rose to 2.9%, an increase of 242,000 from the previous month, which saw a rate of 2.7%, according to the Job Openings and Labor Turnover Survey. Eight hundred ninety-two thousand workers in the foodservice and accommodation industries left their jobs, while 721,000 retail workers departed along with 534,000 in health care and social assistance.
This article was originally posted on FX Empire
