The dollar eased slightly
Gold prices consolidated, nearly forming another doji day which is a sign of indecision. This movement in the yellow metal was in tandem with an unchanged reading on the greenback. U.S. Yields moved lower as U.S. household debt rose by its highest dollar amount in 14 years during the second quarter. According to a report from the Federal Reserve, this change came thanks to a surge in the housing market.
Gold prices moved sideways on Tuesday, moving sideways at the upper end of last week’s range. Support is seen near the 10-day moving average at 1,808. Resistance is seen near the July highs at 1,834. Momentum is negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a downward sloping trajectory which points to consolidation.
Strong gains in the housing market led to a surge in U.S. Household debt. Total debt balances jumped $313 billion in Q2, the sharpest rise since the same period in 2007. As a share of debt, that represented a 2.1% increase. Over the past four quarters, mortgage originations have totaled close to $4.6 trillion, amounting to 44% of all outstanding home loan balances.
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.