Gold Technical Analysis – Gold prices surged higher rising 0.8% and closing at a seven-year high. The next level of target resistance is the April high at $1,747. After that level, gold could rally to $1,927 level. A break of this 2011 level would lift gold into blue sky territory.
Gold short term momentum has turned positive as the fast stochastic generated a crossover buy signal in the middle of the neutral range. The RSI moved higher in tandem with price action reflecting accelerating positive momentum.
The MACD (moving average convergence divergence) index stabilized and started to accelerate higher which reflects accelerating medium-term momentum.
US Jobless Claims Rise in Line with Expectations
US Jobless claim continued to climb at an unprecedented rate last week with 4.4 million new individuals filing initial unemployment insurance claims, bringing the total of the past five weeks to 28.2 million according to the Labor Department. The number represented a decline of 810,000 from the previous week. Expectations were for jobless claims to rise by 4.3 million.
