Gold prices moved higher on Tuesday for a second consecutive trading session, as the dollar restarted its downtrend following a respite last Friday. US yields moved higher following last weeks larger than expected increase in non-farm payrolls. The Labor Department reported on Tuesday that long term unemployment has remained stable.
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Gold prices rebounded for a second consecutive trading session on Tuesday. Prices rebounded back to resistance near the 10-day moving average at 1,713. Target support is seen near the 50-day moving average at $1,700. Short term momentum has flipped flop and turned positive as the fast stochastic generated a crossover buy. The current reading on the fast stochastic is 35, just above the oversold trigger level of 20. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.
Long Term Unemployment Remains Stable
The Labor Department reported that the number of Americans unemployed for more than 27 weeks economists’ general benchmark for long-term joblessness has held steady since the start of the year, at about 1.2 million people. Shorter-term unemployment, on the other hand, has skyrocketed, rising to 13.3% for May after rising above 14% in April.
This article was originally posted on FX Empire
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