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David Becker
Natural Gas
Natural Gas

Gold prices edged lower on Tuesday but rebounded from session lows as it approached support levels. The dollar gained traction which in turn weighed on gold prices. The gains in the greenback came despite a decline in home prices according to Case Schiller.  Riskier assets continued to gyrate as stocks in the US initially started lower but then move higher.  The People’s Bank of China fixed the Yuan at the lowest level in 2018.

Technical Analysis

Gold prices edged lower and bounced just above support near the 20-day moving average at 1,217.  Resistance is seen near the October highs at 1,239.  Momentum has turned negative as the fast stochastic generated a crossover sell signal in overbought territory which points to accelerating negative momentum. The current reading on the index line is 81, above the oversold trigger level of 80, which could foreshadow a correction.  The MACD (moving average convergence divergence) index is poised to generate a crossover sell signal which points to lower prices. The MACD histogram is printing in the black with a declining trajectory which points to decelerating positive momentum.


US Home Prices are declining

Case Shiller reported that Home prices declined and fell below 6% for the first time in a year in their August reading. The decline in prices shows that housing is continuing to slow.  The Case Shiller S&P Core Logic index measures home prices in the 20-largest US cities. August marked the fifth straight month of decelerating price gains, as interest rates have risen and inventory in some markets has been growing. The Case-Shiller 10-city index gained 5.1% over the year, down significantly for the second straight month from 5.5% the prior month. The 20-city index gained 5.5%, down from 5.9% the previous month.  The risk off trade is not helping gold gain traction as the dollar continues to rise weighing on gold prices,

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