Gold Price Prediction – Prices Ease Despite Lower Dollar as COVID-19 Cases in the US top 1-million

The Fed began its first day of a 2-day meeting but little is expected from the Fed on Wednesday as the central bank has already shown that it can make a decision on the fly and do not need to wait for a meeting. Riskier asset were mixed, which kept gold prices in a consolidative range. COVID-19 has now spread to 1-million people withing the United States

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Technical analysis

Gold prices consolidated easing for a second consecutive day and potentially forming a double top. Prices slipped through support which is seen as short-term resistance near the 10-day moving average at $1,709.  Target resistance is the April high at $1,747. After that level, gold could rally to $1,921. Support on gold prices is seen near the

Short term momentum has turned negative as the fast stochastic generated a crossover sell. The current reading on the fast stochastic is 71, coming down from 81 which was above the overbought trigger level of 80, which reflects accelerating negative momentum. The MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day trading crosses below the 9-day moving average of the MACD line.

US COVID-19 Infections Top 1-million

The U.S. hit the milestone reporting more than 1-million COVID-19 infections in  just over two weeks after it reached a reported 500,000 cases and about three months since the first reported infection appeared. This comes as more U.S. states and countries around the world prepared to relax coronavirus-containment measures. Infections in the U.S. make up about a third of the 3.08 million cases reported world-wide.