Gold Price Prediction – Prices Consolidate in Tight Range

David Becker
Published: Nov 18, 2020, 19:42 GMT+00:00

Housing starts rise more than expected

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.

Trade gold with FXTM

Regulated By:FCA, FSCM, CMA
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:2000 (CMA), 1:3000 (FSCM)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

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.

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?