Gold Price Prediction – Gold Falls but Holds Support

Evans says rate could remain steady until 2020
David Becker
Comex Gold

Gold prices moved lower but were able to hold support levels despite a topping pattern than continues to point to lower prices. The dollar rose versus the yen but was lower against most major currencies which helped the yellow metal remain buoyed. Chicago Fed President Evans was on CNBC on Monday saying that he could see rates steady until the Fall of 2020. This tempered any dollar strength, which has kept gold prices from dropping.

Technical Anaysis

Gold prices moved lower but were able to hold on to support level near an upward sloping trend line that comes in near 1,285. Resistance is seen near the 10-day moving average seen near 1,294. Additional resistance is seen near the 50-day moving average at 1,305. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices and accelerating negative momentum. The fast stochastic also generated a crossover sell signal, which points to accelerating negative moemtnum. The current reading on the fast stochastic is 22, which is on the lower end of the neutral range, just above the oversold trigger level of 20.

Evans Says Rates Could Remain Steady until 2020

Chicago Federal Reserve President Charles Evans said on CNBC on Monday that he would be comfortable leaving interest rates steady until the fall of 2020 to help ensure solid price growth. Evans said he wouldn’t categorize the Fed’s December 2018 rate increase as a mistake. The central bank’s preferred inflation metric, core personal consumption expenditures index, rose to 2% in May 2018 but has had trouble maintaining that level for an extended period.

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

Top Promotions

Top Brokers

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.
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.