Advertisement
Advertisement
Gold Price Prediction – Prices Drop on Profit Taking
By:
Gold prices moved lower as a round of profit-taking took prices of the yellow metal back to the open of the week.
This forms a doji day with a long upward wick, which appears to be a rejection of higher levels. The US dollar was down for the day but up for the week. Gold volatility, as reflected by the Gold VIX moved lower on Friday and was down for the week, which generated the 5-consecutive lower week for gold volatility.
Trade gold with FXTM
Regulated By:FCA, FSCM, SCA, CMA
Headquarters:Mauritius
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:3000 (FSCM), 1:2000 (CMA)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS
Technical Analysis
Gold prices moved lower following two-second consecutive sessions of consolidation and a surge to a 7-year high. Resistance is now seen near the April highs at 1,747. Target resistance near the August 2012 highs near 1,791. Prices appear to have bounded at the 10-day moving average at 1,685. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. This happened as the fast stochastic is printing a reading of 76, coming from oversold levels which could foreshadow a continuation of a correction. Medium-term momentum remains positive and has started to consolidate as the MACD (moving average convergence divergence) histogram is still printing in the black with a declining trajectory which points to consolidation.
It will Take Time for the Economy to Come Back
New York Federal Reserve President John Williams in an interview on CNBC said he sees some parts of the economy coming back online but doubts growth will return to normal this year. He initially sees a return to construction jobs, but services jobs like restaurants and bars will take some time to return.
About the Author
David Beckerauthor
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.
Advertisement