Gold Price Prediction – Prices Consolidate Monday’s GainsHome prices slip in March
Gold prices eased Tuesday after surging on Monday. This came despite a selloff in the US dollar which generally helps buoy gold prices. Additionally, riskier assets rebounded for the second consecutive trading session, taking some of the safe-haven status away from gold. US yields moved higher on Tuesday which is also not a good sign for the yellow metal.
Trade gold with FXTM
Gold prices eased slightly on Tuesday after surging on Monday. Prices are still poised to test target resistance near the March highs at 1,703. A break of this level would lead to a test of 2012 highs at 1,795. Support is seen near the 10-day moving average at 1,620. Additional support is seen near the 50-day moving average at 1,599. Housing prices in the US slipped in the latter half of March, inserting additional uncertainty into the market.
A short-term trend is upward sloping as the 10-day moving average has crossed above the 50-day moving average. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. The current reading of the fast stochastic is 90, above the overbought trigger level of 80 which could foreshadow a correction. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram also generated a crossover buy signal, and now the trajectory is moving higher which reflects accelerating positive momentum.
US Home Sales Slip
March housing came in like a lion but out like a lamp. By the second half of the month of March, the first indications that the coronavirus pandemic would weigh on home selling activity took root. In the weeks ending March 21 and March 28, the number of newly listed properties fell by 13.1% and 34% respectively when compared with the same period a year ago, according to Realtor.com.