Gold Price Prediction – Gold Falls but Holds Support

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.