Gold Price Prediction – Gold Hits 2-week High as Dollar Slides

David Becker
Published: Nov 3, 2020, 18:55 GMT+00:00

US Factory orders beat expectations

Gold Price Prediction – Gold Hits 2-week High as Dollar Slides

Gold prices rose for a 3rd consecutive trading session, to the highest levels since October 21. This comes as the dollar dropped and US yields moved higher. Riskier surged ahead of the US election results, which helped buoy the yellow metal.  US factory orders increased for the 5th straight month.

Trade gold with FXTM

Regulated By:FCA, FSCM, CMA
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:3000 (FSCM), 1:2000 (CMA)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices moved higher on Tuesday testing resistance near the  50-day moving average at 1,914. Support on the yellow metal is seen near the 10-day moving average at 1,896. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 48, up from 28 which reflects accelerating positive momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index 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).

US Factory Orders Rose

U.S. factory orders rose 1.1% in September to mark the 5th straight gain, pointing to a steady recovery in the manufacturing segment of the economy. Expectations had been for a 1% increase. Orders for durable goods made to last at least three years climbed 1.9% in September, the same as the original reading, Orders for nondurable goods such as clothing and food products rose a smaller 0.3%.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?