Gold Price Prediction – Prices Consolidate Despite Falling DollarUS yield rise removing some of the safe-haven bid
Gold prices whipsawed but were unable to gain traction despite a decline in the greenback which was offset by a rally in US yields. This came as UK exit polls projected an 86-seat majority for the Conservative Party in the U.K. general election. Riskier assets gained traction as the White House announced that a phase-1 deal with China was all but confirmed. Both the US and China have announced that an agreement in principle was all but complete.
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Gold prices attempted to move higher as the dollar lost ground but were unable to push through resistance near the moved higher pushing through short-term resistance near the 50-day moving average near 1,479. Short term support seen near the 10-day moving average at 1,468. Prices remain in a downward sloping consolidation pattern, after running up to fresh multi-year highs in September. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is neutral as the MACD histogram prints in the black with a flat trajectory which points to consolidation.
Boris Johnson Wins a Majority
Exit polls from the UK show that the conservatives have won a majority and will likely move forward with a Brexit. Shortly after 10 p.m. London time, a survey of thousands of people who had just left the voting booth, indicated that the Conservatives are on course to gain around 50 seats, ensuring a healthy majority. The Labour would lose 71 seats from its performance in 2017. In Scotland, the Scottish National Party is forecast to win as many as 55 seats