Advertisement
Advertisement

Gold Price Prediction – Prices Consolidate Despite Robust Retail Sales

By:
David Becker
Published: Jun 16, 2020, 18:46 UTC

Industrial production rises less than expected

Gold Price Prediction – Prices Consolidate Despite Robust Retail Sales

Gold prices edged higher on Tuesday but remain rangebound and were unable to test either support or resistance. The dollar moved higher but the trend remains downward sloping. US yields were mixed, following a much better than expected US retail sales report. US Industrial production came in weaker than expected. US homebuilder confidence came in stronger than expected as low mortgage rates continue to buoy the housing market.

Trade gold with FXTM

Regulated By:FCA, CySEC , FSCA, FSCM
Headquarters:Cyprus
Foundation Year:2011
Min Deposit:$10
82% of retail CFD accounts lose money
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:30 (CySEC ), 1:500 (FSCA), 1:3000 (FSCM)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, , Local Deposit, , Maestro, Visa, Mastercard
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Mastercard, , , PerfectMoney, Maestro, Visa
Products:Currencies, Commodities, Indices, Stocks
Trading Platforms:MT4, MT5, ,
Trading Desk Type:No dealing desk, ECN, Market Maker
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices edged higher but remain above support is seen near the 10-day moving average at 1,715 Target support is seen near the 50-day moving average at $1,712. Short term momentum has turned negative as the fast stochastic generated a crossover sell. The current reading on the fast stochastic is 77, down from 86 which was 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). The MACD histogram is printing near the zero-index level with a flat trajectory that points to consolidation.

US Retail Sales Comes in Stronger than Expected

Retail sales increased by 17.7% in May, though total spending was down year over year due to the spread of COVID-19. This compared to expectations would rise by about 8%. Retail Sales at restaurants and online, increased 17.7% in May from a month earlier, according to the Commerce Department. U.S. Clothing and accessories stores reported the biggest percentage gain at 188% while sporting goods, hobby, musical instruments and book stores rose 88.2%. After being almost completely shuttered during the lockdown, food services and drinking places saw a 29.1% rebound in May.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?

Advertisement