Gold Price Prediction – Prices Rise but Remain Range Bound Ahead of Long Weekend

Gold prices moved higher on Friday ahead of a long holiday weekend in the US. Prices are moving sideways, continuing to wait for an impetus. For the week, Gold was down slightly after hitting a fresh 7.5-year high. The US Department of Labor reported that the jobless rate rose in all 50 states and the District of Columbia last month, and 43 states recorded the highest level on record since 1976. The US dollar moved higher on Friday but that failed to generate headwinds for gold prices. The US yields were slightly lower on the session.

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Technical analysis

Gold prices moved higher, unable to break down, after hitting a fresh 7.5-year high on Wednesday.  Prices seemed to hold support near the 10-day moving average at $1727. Resistance is seen near the May highs at $1,765. Short-term momentum has turned negative as the fast stochastic recently generated a crossover sell signal in overbought territory. Medium-term momentum has also turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This 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).

US Jobless Rate Surges

The Department of Labor reported its first breakdown of job losses per state. The jobless rate rose in all 50 states and the District of Columbia last month, and 43 states recorded the highest level on record since 1976. The rate in three states exceeded 20% in April, well above the national rate of 14.7%, which was the highest on record since 1948. Nevada registered the highest unemployment rate in the U.S. last month at 28.2%.