Gold prices finished the week on an up note, rising 0,75% and closing the week up more than 5%. The dollar continues to slide declining 0.5% on Friday and down 1.75% for the week. Optimism in the US continues to fade as more workers now believe their temporary job losses will become permanent. US yields continued to move lower, helping to undermine the greenback, and paving the way for higher gold prices.
Technical Analysis
Gold prices finished at 8-year highs and continue to accelerate higher. They are now withing spitting distance of the all-time highs which is target resistance near the August 2011 all-time highs at 1,912. Support is seen near the 10-day moving average near 1,834. Medium-term momentum has reversed and turned positive as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory points to higher prices. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The fast-stochastic is printing a reading of 95 above the overbought trigger level of 80, which could foreshadow a correction. The RSI also surged higher reflecting accelerating positive momentum and is printing a reading of 82, above the overbought trigger level of 70 which could foreshadow a correction.
US Job Optimism is Fading
Job optimism in the US is fading. In April, 78% of those in households with a job loss thought they’d be temporary. Now, 47% think that lost job is definitely or probably not coming back, according to the latest poll from The Associated Press.
Leave a comment