Gold Price Prediction – Prices Drop as Trade Premium Declines

Traders await news of a trade deal
David Becker
Gold Price, Commodities Investment

Gold prices dropped slightly more than 0.6% on Friday as news of a potential trade agreement removed some of the geopolitical premium in the price of the yellow metal. News that there is a potential pathway to Brexit came in the form of the comment by EC President Donald Tusk citing promising signals of progress. Prices were initially buoyed by news that an Iranian oil tanker was likely hit by a missile attack in the Red Sea.  Some believe the Saudi’s in a possible retaliation for the attacks against its facilities in mid-September.

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

90% of retail CFD accounts lose money

 

Technical Analysis

Gold prices moved lower on Friday for a second consecutive trading session. For the week gold is down approximately 1%.  Prices settled off the lows rebounding ahead of support near an upward sloping trend line that comes in near 1,471. Resistance is seen near the 10-day moving average at 1,494, and then a downward sloping trend line that comes in near 1,517. Short term momentum has whipsawed and turned negative as the fast stochastic generated a crossover sell signal. The fast stochastic is printing in the middle of the neutral range. Medium-term momentum is beginning to consolidate. The MACD histogram is printing near the zero-index line with a flat trajectory which points to consolidation, but also a potential crossover buy signal is about to occur.

Import Prices Rose

Prices of goods that are imported into the United States rose slightly in September driven by lower prices for good that excluded oil.  According to the Labor Department, import prices increased by 0.2% last month. Expectations were for import prices to remain flat month over month. The import data that was released in August was revised to import prices declined by 0.2% instead of the 0.5% decline previously reported.

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