Gold Price Prediction for December 11, 2017
Gold prices rebounded creating a dead cat bound, as the dollar lost ground despite a robust payroll report. Wage growth remains tepid, which is keeping a cap on U.S. yields, which help stop the rally in the greenback. Support is seen near the July lows at 1,204, while resistance is seen near former support near the recent breakdown level near 1,260. Momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.
Payrolls Beat Expectations
U.S. nonfarm payrolls increased 228k in November, beating expectations of 190K, after climbing 244k in October. The unemployment rate held at 4.1%. The labor force bounced 148k versus -765k in October, with household employment up 57k from -484k. Earnings rose 0.2% from -0.2%, and year over year earnings were 2.5%. Hours worked increased to 34.5 from 34.4. Private payrolls were up 221k compared to October’s 213k , with a 62k gain in the goods production sector and a 24k gain in construction, while manufacturing rose 31k. The service sector added 159k.
This article was originally posted on FX Empire
