Gold Price Prediction – Prices Break Out as Momentum Accelerates
Gold prices surged higher on Tuesday as US long-term yields dropped, paving the way for a lower dollar. The greenback closed at the lowest weekly level since 2018. Since gold is quoted in dollars, a decline in the value of the dollar is offset by a rally in the yellow metal. Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index.
Trade gold with FXTM
Gold prices moved higher climbing nearly 1% on robust volume. The 10-day moving average crossed above the 200-day moving average recently, which shows that an upward trend is in place.Target resistance is seen near the 2021 highs at 1,960. Support is seen near the 10-day moving average at 1,862. Momentum has turned higher as the fast stochastic generated a crossover buy signal. The RSI also surged higher and is currently printing a reading of 76, above the overbought reading of 70, which could foreshadow a correction. During the runup in prices in 2020, gold had an RSI reading of 89 as prices tested the 2,100 level. Medium-term momentum is positive as the MACD (moving average convergence divergence) index is printing in positive territory with an upward sloping trajectory which points to higher prices.
Home Prices Rose in March
Home prices in March were 13.2% higher compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index. The increase put the index up 12% year over year, and was the 10th straight month of accelerating home prices. The 10-city composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-city composite increased 13.3%, up from 12% in February.