Gold Price Prediction – Prices Consolidate Following Strong Housing DataThe dollar continues to slide
Gold prices continue to trade sideways edging slightly lower on Thursday. The US dollar moved lower but this failed to buoy the yellow metal. Gold implied volatility climbed for the first time in near 2-months as investors might be getting concerned about the sideways gold price action. Implied volatility measures how much options traders believe the markets will move on an annualized basis. US existing home sales rose for a 5th straight month but failed to buoy US yields.
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Gold prices edged lower sandwiched between resistance near the 10-day moving average at 1,882. The weekly chart of gold is forming a bull flag continuation pattern which is a pause that refreshes higher. Support is seen near the October lows at 1,850. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is neutral to negative as the MACD (moving average convergence divergence) histogram prints in the red with a declining trajectory which points to consolidation.
Existing Home Sales Rise
US existing home sales increased for a fifth straight month in October. According to the National Association of Realtors’ existing home, sales increased by 4.3% to an annual rate of 6.85 million units last month. Data for September was revised up to a rate of 6.57 million units from the previously reported 6.54 million units. Expectations were for sales to fall by 1.2% to a rate of 6.45 million units in October.