FXEMPIRE
All

Gold Price Prediction – Prices Continue to Surge on Middle-East Tensions

Geopolitics lifts gold prices
David Becker

Gold prices surged higher on Monday, as geopolitics continued to dominate the landscape. President Trump doubled down on his treats in the mid-east telling Iraq that if US troops were kicked out of the country, following a vote by the Iraqi parliament. Loosing a stronghold in Iraq, that they US built would create additional chaos in the region. Markit reported final December Eurozone PMI services which were stronger than expected helping to buoy the Euro and pave the way for higher gold prices.

Trade gold with FXTM

 

 

 

 

 

 

 

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

 

 

 

Technical Analysis

Gold prices surged breaking through the September highs at 1,556, and hitting 1,586, before closing off the highs of the day. The weekly charts on gold prices have broke out. Target resistance is now seen near the October 2012 highs at 1,795.  Short term support is seen near the September highs at 1,556 and then the 10-day moving average at 1,507. The 10-day moving average recently crossed above the 50-day moving average which shows that a short term up trend is now in place. The daily RSI (relative strength index) is now printing a reading of 85, rising from 82 which reflects accelerating positive momentum. This nearly equals the high print on the RSI of 87 in 2019. The RSI is above the overbought trigger level of 70, and also points to a potential future correction.

Weekly momentum is positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-week moving average minus the 26-week moving average) crosses above the MACD signal line (the 9-week moving average of the MACD line).

Markit reported its final December eurozone services and composite PMI readings came in higher than expected.  The headline on the services was 52.9 and 50.9, on the composite.  Germany improved significantly from the flash reading.  Germany also reported strong November retail sales, up 2.1% month over month versus. 1.0% expected.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US