Gold Price Prediction – Gold Edges Higher Despite Mixed Employment Report

Gold prices moved sideways edging higher on Friday, as the payroll report had enough positive information to keep the dollar stable. The dollar moved lower on Thursday following a much softer than expected ISM services report. Yields were stable despite the headline non-farm payroll report missing expectations as the unemployment number hit a fresh 50-year low.

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Technical Analysis

Gold prices rallied 0.2% on Friday generating basically a doji day where the open and close were at the same level reflecting indecision. Prices tested resistance early pushing to resistance seen near a downward sloping trend line near 1,522. Prices are hovering just above short term support near the 10-day moving average at 1,502. Additional support is seen near an upward sloping trend line that comes in near 1,464. The 100-day moving average is target support near S1,433. Short term momentum has turned positive fast stochastic generated a crossover buy signal in the middle of the neutral range. Medium-term momentum is beginning to consolidate. The MACD histogram is printing in the red with an upward sloping trajectory which points to consolidation, but also a potential crossover buy signal.

Payrolls Came in Slightly Less than Expected

Non-farm payrolls rose by 136,000 slightly lower than the 145,000 expected. Unemployment hit a fresh 50-year low in September according to the Labor Department. The jobless rate dropped 0.2 percentage points to 3.5%, matching a level it last saw in December 1969. Expectations were for the unemployment rate to come in at 3.7%. A more encompassing measure that includes discouraged workers and the underemployed also fell, declining 0.3 percent points to 6.9%, matching its lowest in nearly 19 years and just off the all-time low of 6.8%.