Advertisement
Advertisement

Gold Price Prediction – Prices Drop Sharply as Yields Continue to Rise

By:
David Becker
Published: Jan 8, 2021, 20:55 GMT+00:00

Gold prices tumbled on Friday as the dollar rebounded sharply and US yields surged. The strong upward momentum in US yields is putting downward pressure

Gold Price Prediction – Prices Drop Sharply as Yields Continue to Rise

Gold prices tumbled on Friday as the dollar rebounded sharply and US yields surged. The strong upward momentum in US yields is putting downward pressure on gold prices. This came despite weaker than expected US payroll data. With a new administration come in in 2-weeks, the market is getting ahead of a potential stimulus deal. President-elect Biden condemned President Trump’s comments and said that Vice President Trump is welcome to come to the inauguration.

Trade gold with FXTM

Regulated By:FCA, CMA, FSCM
Headquarters:Cyprus
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.
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:2000 (CMA), 1:3000 (FSCM)
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 sliding thro9ugh support. Resistance, which is former support is seen near the 10-day moving average near 1,899. Support is seen near an upward sloping trend line that comes in near 1,815.  The 10-day moving average crossed above the 50-day moving average, which means a medium-term uptrend is now in place.  Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 73, down from 88 which reflects decelerating positive momentum. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) line generated a crossover sell signal.

Jobs Data Disappointed

The Labor Department reported that nonfarm payrolls fell by 140,000. That was below expectations for 50,000 increase. It was the first monthly drop since April. The unemployment rate was unchanged at 6.7%, compared to a 6.8% estimate. An alternative unemployment measure that includes discouraged workers and those holding part-time jobs for economic reasons declined to 11.7% from 12%.

About the Author

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