Gold Price Prediction – Prices Consolidate Despite Robust Retail Sales
Gold prices barely moved on Friday inching lower and trading in a very tight range. The dollar declined slightly after rallying on Thursday as US yields consolidated. The movement in the dollar and yield came despite a stronger than expected US retail sales report, that seemed to be countered by a slight dip in US consumer confidence.
Trade gold with FXTM
Gold prices edged lower trading sideways and barely moving on Friday. Prices remain above short term support is seen near the 10-day moving average at 1,902. Resistance is seen near the 50-day moving average at 1,927. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal on the upper end of the neutral range. Medium-term momentum remains neutral as the MACD histogram prints in the black with an upward sloping trajectory that points to a slow trend higher.
Retail Sales Comes in Strong than Expected
US retail sales came in strong than expected as consumers accelerated their buying habits. US retail sales increased by 1.9% month over month. Expectations had been for retail sales to increase 0.7%, up from a 0.6% rise in August. Excluding autos, the gain amounted to 1.5%, which also was better than the 0.4% estimate.