Gold prices moved lower as the dollar whipsawed as investors shunned the Fed’s decision to keep interest rates unchanged. The Fed said that they planned to keep interested rates near zero for the next 3-years which should help buoy the yellow metal.
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Gold prices moved lower unable to gain momentum bouncing at support near the 50-day moving average at 1,932. Prices pushed back through short term support is seen near the 10-day moving average near 1,944. Target resistance is seen near the September highs at 1,979. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The relative strength index is moving sideways to higher which is a sign of accelerating positive momentum.
Jobless Claims Rise Less than Expected
US Jobless claims rose by 860,000 for the week ended September 12, according to the Labor Department. Expectations were for new claims to rise by 875,000, against the previous week’s upwardly revised 893,000. Continuing claims, which fell 916,000 to 12.63 million, compared with the 13 million expected. The four-week moving average for continuing claims dropped by 532,750 to 13.5 million. Continuing claims peaked at 24.9 million in early May.
This article was originally posted on FX Empire