Weekly Gold Price Technical Analysis: Massive jobs growth in the US now muddying economic forecast
US private sector employment added a massive 497,000 new jobs in the month of June. This almost doubled expectations and has economist scratching their heads in confusion.
“The data is out of left field or perhaps from somewhere in the multiverse because it simply doesn’t fit with any other piece of US labour market data we have from this planet,” said Omair Sharif, economist and founder of Inflation Insights.
While it is great news to see jobs grow economically, it would be amiss to start celebrating too quickly. Jobless data was incorrectly reported earlier this year due to unemployment benefit fraud. As many as 50,000 jobless claims were incorrectly reported during this period. We’ll keep an eye on this data and see how it continues to affect markets.
With much of the FED’s decision making process based on the metrics they use to measure the economy, they’ll now be weighing up additional rate rises to ensure inflation stays under control. In the meantime, markets have responded a little negatively to the job gains, with the US500 down approx. 0.7%.
Gold and Silver continue to range just above their 200MDA. Both averages are working as a hard floor, with both precious metals either bouncing off it (Silver) or staying well clear of it (Gold). RSI for both Gold and Silver is looking opportunistic for gains in both metals, though there is a chance of more downside in the near term before a bounce back up.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
Gold Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis and a SELL signal.
Technical indicators – Monthly Projections
| RSI(14) | Neutral |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Buy |
| MACD(12,26) | Buy |
| ADX(14) | Neutral |
| Williams %R | Buy |
| CCI(14) | Neutral |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Sell |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: STRONG BUY
Disclaimer
This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.
