Gold Price Prediction – Prices Consolidate as the Dollar Strengthens

Gold prices edged lower and continue to trade sideways following the large move the yellow metal experienced at the end of last week. As opposed to the softer than expected Jobs report released on Friday, today’s JOLTs report showed that a record number of job openings in the United States.  The dollar edged higher and yields moved lower, which kept the yellow metal in a relatively tight range.

Tecnical analysis

Gold prices consolidated edging lower. Prices edged through support which is now resistance seen near the 50-day moving average, at 1,797. Resistance is seen near the 10-day moving average at 1,809. Target support is seen near the August lows at1,672. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This sell signal occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

JOLTS Rises More than Expected

The department’s Job Openings and Labor Turnover Survey showed 10.9 million positions open. That was much higher than the estimate of 9.9 million and the June total of 10.18 million. That number swamped the 8.7 million level of those out of work and looking for jobs in July. Hiring slowed sharply in August, with payrolls growing by just 235,000 even as the total unemployed dipped to just shy of 8.4 million. The rate of job openings measured against the total labor force swelled to 6.9% in July, up from 6.5% the previous month and 4.6% a year ago.