Gold prices surged higher breaking out above resistance levels as US yields tumbled despite a stronger than expected U.S. Retail sales report. The U.S. 10-year yield dropped nearly 11-basis points once of the largest declines of the year. Advance retail sales rose 9.8% for the month, the Commerce Department reported compared to estimates of a 6.1% gain and a decline of 2.7% in February. The restaurant industry saw a 13.4% surge, thanks to the increasing relaxing of restrictions as Covid vaccines accelerate to a pace of more than 3 million a day.
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Gold prices surged higher, breaking through resistance which is now support near the 50-day moving average at 1,753. Target resistance on the yellow metal is seen near the February highs at 1,855. Short-term momentum reversed and turned positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 84, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.
Jobless Claims Drop
Initial jobless claims dropped to 576,000 for the week ended April 10. That was easily the lowest total since the early days of the Covid-19 pandemic and represented a sharp decline from the previous week’s total of 769,000. The estimate was 710,000.
This article was originally posted on FX Empire