Gold Price Prediction – Prices Consolidated Ahead of Biden Inauguration

Gold prices consolidated on Tuesday following the long U.S. holiday weekend. The range was less than $12 per ounce as the world awaits the U.S. Presidential inauguration on Wednesday. The dollar moved lower, helping to buoy the yellow metal as U.S. yields took a hiatus from moving higher. Senate Majority Leader Mitch McConnell said that President Trump provoked the mob that stormed the Capitol earlier this month, casting blame on the violent attack president.

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Technical analysis

On Tuesday, gold prices consolidated, holding just above an upward sloping trend line that comes in near 1,825. A close below this level would lead to a test of the November lows at 1,764. Short-term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 18, below the oversold trigger level of 20. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) line generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory, which points to lower prices.

Yellen Hearing to Be Treasury Secretary was Held on Tuesday

Janet Yellen told lawmakers she would make the needs of America’s workers her core focus if confirmed as the next U.S. Treasury secretary. The former Chair of the Federal Reserve said that she would ensure the U.S. has a competitive economy that offers good jobs and wages workers in cities and rural areas.