Gold Price Prediction – Prices Consolidate in Tight Range
Gold prices traded sideways despite rising US yields. The US dollar moved lower but this failed to buoy the yellow metal, which has become uncorrelated to riskier assets. It appears that Bitcoin has taken the mantel from gold as an alternative asset that is buoyed by risk-on news.
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Gold prices edged lower sandwiched between resistance near the 10-day moving average at 1,891. 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.
US Housing Start Rise More than Expected
US housing starts rose more than expected in October, buoyed by strong demand for people leaving the cities and low mortgage rates. Housing starts rose 4.9% to an annual rate of 1.530 million units last month, according to the Commerce Department. Data for September was revised up to a 1.459 million-unit pace from the previously reported 1.415 million. Expectations had been for Housing starts to move to a rate of 1.460 million units.