Gold Price Prediction – Gold Consolidates but Rises 4% for the Week

Gold trade sideways as US PPI remains subdued
David Becker
Gold daily chart, August 09, 2019

Gold prices were nearly unchanged for a second straight trading session as prices consolidated after surging this week. The increased volatility in the market pushed the yellow metal up more than 4% during the week. The Euro gained traction later in the week and the greenback retreated paving the way for higher gold prices. US PPI was in line with expectations reflecting subdued whole price inflation,

 

Trade gold with FXTM

 

 

 

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

90% of retail CFD accounts lose money

 

 

 

 

 

 

 

Technical Analysis

Gold prices consolidated for the second consecutive trading session. Resistance is now seen near the March 2013 highs at 1,616. Support is seen near the 10-day moving average at 1,458. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal in overbought territory. The current reading on the fast stochastic is 91 well above the overbought trigger level of 80 which could foreshadow a correction. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) 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). The MACD histogram is printing in the black with an upward sloping trajectory which points to higher gold prices.

US PPI was in Line with Expectations

The Labor Department reported on Friday that producer prices increased by 0.2% last month after nudging up 0.1% in June. On a year over year basis, July the PPI increased 1.7% after advancing by the same margin in June. Expectations have been for PPI to rise 0.2% in July and increase 1.7% on a year-on-year basis. Excluding the volatile food, energy producer prices edged down 0.1% last month. That was the first decline since October 2015 and followed an unchanged reading in June. Core PPI increased 1.7% in the 12 months through July after rising 2.1% in June.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US