FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
19,311,573Confirmed
718,618Deaths
12,397,992Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

Gold prices are continuing to break out and closed on Tuesday at a fresh-7-year high. The US dollar moved lower on Tuesday paving the way for higher gold prices. US yields edged lower following a softer than expected existing homes sales report. Concerns that COVID cases have reaccelerated in the US has helped lift the yellow metal.

Trade gold with FXTM

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

Technical analysis

Gold prices moved higher closing above trend line resistance and continue to break out closing at fresh 7-year high. Support on the yellow metal is seen near the 10-day moving average at 1,737. Target resistance on the yellow metal is the August 2012 highs at $1,791. Short term momentum has turned positive as the fast stochastic generated a crossover buy. The current reading on the fast stochastic is 95, above the overbought trigger level of 80 which could foreshadow a correction. Medium-term 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).

Advertisement

New Homes Sales Rose More than Expected

Sales of newly built homes rose more than expected, up nearly 13% annually, according to the U.S. Census. Single-family housing starts in May were close to 18% lower annually, and building permits, an indicator of future construction, were down about 10%. Homebuilders are ramping up hiring to meet the improved demand, adding 226,000 workers in May.

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

Trade With A Regulated Broker

  • Your capital is at risk