FXEMPIRE
All

Gold Price Prediction – Prices Attempt to Move higher but Fail after Robust GDP Report

David Becker
Gold daily chart, October 26, 2018

Gold prices attempted to move higher on Friday, but where unable to pierce through resistance.  Prices initially had a bid as the risk off trade took hold following worse than expected earnings from technology titans Amazon and Alphabet.  Better than expected US GDP helped put a floor under prices, but stronger than expected inflation did not help Gold prices gain ground. The dollar received a lift following the GDP number capping the rise in the yellow metal.

Technical Analysis

Gold prices attempted to move higher making a new high for October which is seen of 1,243 which is now resistance. Support is seen near the 20-day moving average at 1,214.  The 20-day moving average crossed above the 50-day moving average which means a medium term up trend is now in place.  Positive momentum continues to decelerate as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation.

GDP was Stronger than Expected, Helping to Buoy the Dollar

According to the US Commerce Department US Gross domestic product expanded by a 3.5% annual rate. This compared to expectations that it would rise by 3.4%. On the inflation front the PCE index increased by 1.6% in the latest quarter much less than the 2.2% expected. Consumer spending, which accounts for more than two thirds of U.S. economic activity, grew by 4% in the Q3 which was the strongest since the fourth quarter of 2014. The strong rise in consumer spending helped offset a 7.9% decline in business spending. That was the biggest quarterly decline in business spending since the first quarter of 2016.

The stronger than expected number was encouraging but it was softer than last quarter.Gross domestic product grew by 4.2% in the second quarter, marking the fastest quarterly expansion since the third quarter of 2014. The economy increased by 2.2% annual pace in the first quarter of the year.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US