Gold prices edged higher and continue to trade sideways

Gold prices in india

Gold prices continued to consolidate and trade sideways despite a declining dollar and lower US Treasury yields. Yields declined following a smaller than expected decline in US jobless claims, which shows that the US jobs market remains under pressure. Nancy Pelosi the House Speaker was on the tape saying that she would not move forward with a skinny stimulus deal, while President Trump said that he would not participate in any debates that were not in person.

Gold prices edged higher and continue to trade sideways. Prices recaptured resistance now support near the 10-day moving average at 1,890. Resistance is seen near the 50-day moving average at 1,940. Medium-term momentum has turned positive but the trajectory of the crossover is flat which likely means there is consolidation. The MACD histogram moved into negative territory with a flat trajectory which also points to consolidation. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal in the middle of the neutral range.

US jobless claims edged down to 840,000 last week, higher than expected reflecting the slow rebound in the jobs market. Expectations were for claims to rise to 825,000. The decline in claims came from an upwardly revised 849,000 in the prior week. Despite the elevated level, this was the lowest level of claims since the virus-induced shut down in mid-March. Florida showed the biggest jump in claims last week, rising by 7,827, while New Jersey reported a decline of 4,469, according to unadjusted numbers.