Gold Price Prediction – Gold Trades Sideways Forming Inside Day

Gold prices moved higher as the Euro gained traction following stronger than expected EU GDP. US yields moved lower, following President Trump’s tweet requesting that the Fed cut interest rates and bring back quantitative easing to push the US economy up like a rocket. US Pending home sales came in stronger than expected but this failed to buoy the greenback.

Technical Analysis

Gold prices edged higher forming another inside day which is a sign of indecision. Prices are hovering just above short-term support near the 10-day moving average at 1,277. Resistance is seen near the 50-day moving average at 1,298. 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). The MACD histogram is printing in the black with a downward sloping trajectory which points to higher prices and accelerating positive momentum. The fast stochastic continues to move higher with an upward sloping trajectory which points to accelerating positive moemtnum. The current reading on the fast stochastic is 38, which is in the middle of the neutral range and points to consolidation.

Eurozone Growth in Q1 Comes in Stronger than Antisipated

The eurozone reported growth in the first quarter of 2019.  GDP rose 0.4% quarter over quarter and increased the year over year rate up a tick to 1.2%. This compares to expectations that Q1 GDP would rise to 0.3% quarter over quarter from 0.2% in Q4.   France reported weaker than expected March consumer spending which came in at -0.1% month over month but this was offset by a larger than expected drop in German unemployment.  US Pending home sales which describes homes that are going into contract, increased 3.8% which was more than expected.