Gold Price Prediction – Gold Prices Ease but Trend Points to Higher Prices

Mixed ZEW survey helps cap gold prices
David Becker
Risk Aversion Remains As Major Catalyst, Gold Reports Minor Losses
Risk Aversion Remains As Major Catalyst, Gold Reports Minor Losses

Gold prices eased slightly but hold near support after breaking out of trend line resistance on Monday. While riskier assets rebounded on Turn around Tuesday, the feeling that volatility has returned has infiltraded the gold market. The trade dispute between the US and China continues to drive the news. Tweets and comments from the White House Administration as well as President Trump are attempts to buoy riskier assets. Gold prices remain buoyed, despite an uptick in US yields, which rebounded slightly on Tuesday. The German ZEW survey was mixed, allowin the dollar to gain some traction, UK employment data was also mixed.

Technical Analysis

Gold prices eased slightly on Tuesday, falling back after breaking out on Monday. Prices broke out above trend line resistance near 1,294, which is now seen as short-term support. Additional support is seen near the 50-day moving average at 1,291, and then the 10-day moving average at 1,283. Resistance is seen near the April highs at 1,310. Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The fast stochastic is accelerating higher, and is widening from the slow stochastic which reflects accelerating positive momentum.

German ZEW Survey Improved

The German ZEW survey which is an assessment of the current situation improved from 5.5 to 8.2, which is more than expected.  It is the first increase since last September.  Not all the news was good news. The future expectations component contracted into negative territory to -2.1 where it had been since April 2018.  Separately, the UK reported average weekly earnings that rose less than expected. Earnings increased to 3.2% year over year, compared to expectations they would rise to 3.4%.  Ex-bonus earnings were in line with expectations rising to 3.3% year over year.  Unemployment fell to 3.8%, while employment rose 99k less than the 140K expected.

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

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.