Gold Price Prediction – Prices Ease from 6-Year Highs

Gold eases as geopolitical risks percolate
David Becker
Gold daily chart, July 18, 2019

 

Gold prices reversed course on Friday, after hitting a fresh 6-year high, as traders took profits ahead of the weekend. Gold and silver prices have benefited throughout the week as investors turned to gold as the safest currency. The dollar moved lower on Thursday but rebounded slightly on Friday paving the way for traders to lighten their load. University of Michigan sentiment came in slightly less than e3xpected but remains at elevated levels.

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 eased on Friday, after surging to a fresh 6-year high on Thursday. Resistance is now the Friday highs at 1,448. Support on the yellow metal is seen near the 10-day moving average at 1,414. Momentum has turned neutral. The MACD (moving average convergence divergence) index was poised to generate a crossover buy signal, but that was rejected. Short term momentum remains positive as the fast stochastic continued to accelerate. The RSI (relative strength index) turned lower, which reflects a capping out of accelerating momentum.

Sentiment Remains Buoyed

The University of Michigan’s preliminary consumer sentiment index rose to 98.4, from 98.2 in June. Expectations was for July consumer sentiment to reach 98.5. This comes ahead of the Federal Open Market Committee scheduled for July 30-31. Strong consumer data has largely held up in face of an expected reduction in interest rates which has made it more difficult to justify policy easing. The Federal Reserve usually does not cut interest rates when economic conditions show few signs of a recession. The market is beginning to price in a potential 50-basis point rate cut. This comes despite a stronger than expected retail sales report which was released earlier this week. President Trump continues to state that the Fed has it wrong and they need to cut rates more.

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

Top Promotions

Top Brokers

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