Gold Price Prediction – Prices Closed Unchanged as 10-Yields Hit 12-month Highs

Gold prices opened where it closed forming a doji day despite rising US yields. The 10-year treasury broke out to the highest levels in more than 12-months. US yields were buoyed by a better-than-expected consumer confidence report issued by the University of Michigan on Friday.

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Technical analysis

Gold prices attempted to move higher but opened where it closed hovering above the 10-day moving average at 1,715. Target resistance is now seen near the 50-day moving average at 1,1812. Additional support is seen near the June lows at 1,670.   Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The fast stochastic has moved out of oversold territory, which also reflects positive momentum.  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 9-day moving average of the MACD line.

Consumer Confidence Rises

The sentiment is rising as American consumers are growing more confident as the vaccine’s rollout continues to accelerate. President Joe Biden’s call on states to make shots available to all adults by May 1 and the new $1.9 trillion stimulus package should generate a robust driver of good news to help Americans feel better about the economy. The consumer sentiment index rose to 83 points, up from 76.8 in February. Although that’s still below the level from a year ago, it was more substantial than experts had predicted.