Gold Price Prediction – Prices Consolidate Following Unresolved Election Results

Gold prices edged lower as the dollar rebounded slightly in the wake of the US Presidential election. Gold had been viewed as a riskier asset when stocks were rising and falling before the election but have but there was no follow-through on the rally that had ensued over the past 3-trading session. The dollar moved slightly higher while yields tumbled, following softer than expected US payroll data.

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Technical analysis

Gold prices moved lower and appear to be trading sideways. Resistance is seen near the 50-day moving average at 1,913. Support on the yellow metal is seen near the 10-day moving average at 1,894. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 56, up from 48 which reflects accelerating positive momentum. 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).

US Private Payrolls Rise more than Expected

The US ADP Private payrolls rose at a smaller rate than expected in October. According to ADP private payrolls increased by 365,000 jobs last month below the 600,000 expected. The rebound was the smallest increase since July.  The ADP estimate, done in conjunction with Moody’s Analytics, has varied widely from the government’s official nonfarm payrolls report, which is expected to be released on Friday.