Advertisement
Advertisement

Gold Price Prediction – Prices are Poised to Move as Volatility Contracts

By:
David Becker
Published: Jan 26, 2021, 20:00 GMT+00:00

Home prices surge

Gold Price Prediction – Prices are Poised to Move as Volatility Contracts

 

Gold prices edged lower and continue to experience lackluster trading activity. Gold “at the money” implied volatility has eased to 17.8%, which is close to support near 17.5% and nearly a 6-month low. The dollar moved lower and yields moved higher but this failed to buoy the yellow metal or drive price action. According to the latest Case Shiller Home price report, US home prices continued to rise at a steady pace in November.

Trade gold with FXTM

Regulated By:FCA, FSCM, SCA, CMA
Headquarters:Mauritius
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 edged lower on Monday and continued to experience lackluster price action. After forming a doji day on Monday, which is is a sign of indecision, prices edged lower, despite a declining greenback. Prices are sandwiched between support near the 10-day moving average at 1,850 and resistance, which is seen near the 50-day moving average at 1,858. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term negative momentum has decelerated as the MACD (moving average convergence divergence) histogram is printing in the red with a rising trajectory, which points to consolidation.

US Home Prices Trend Higher

The surge in home prices continues to trend higher, driven by demand and a record low supply of homes for sale. Prices nationally rose 9.5% in November, compared with November 2019, according to the S&P CoreLogic Case-Shiller Home Price Indices. That is the most substantial annual growth rate in over six years. The 10-city composite yearly increase in prices was 8.8%, up from 7.6% in October. The 20-city composite showed a 9.1% year-over-year gain, up from 8.0% in the previous month.

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.

Advertisement