Gold Price Prediction – Prices Edge High Following Weak US Retail SalesThe dollar eased paving the way for higher gold prices
Gold prices moved higher on Wednesday but remained range-bound making a lower low and a lower high. On the geopolitical front, Turkey and Syria remain in the headlines. President Trump on Wednesday backed up his decision to leave Syria but also stated that he never gave the green light to Turkey to attack Syria. Trump clearly stated that he wants to get out of the middle east and does not want the US to be the region’s policeman.
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Gold prices moved higher on Wednesday but the trend continues to point to lower prices. Prices are caught between support seen near an upward sloping trend line that comes in near 1,473. Resistance is seen near the 10-day moving average at 1,495, and then a downward sloping trend line that comes in near 1,513. Short term momentum is neutral as the fast stochastic generated a crossover buy signal following a recent crossover sell signal. The fast stochastic is printing in the middle of the neutral range. Medium-term momentum has also turned negative. The MACD histogram is printing in the red with a declining trajectory which points to accelerating negative momentum and lower prices.
US Retail Sales Disappoint
The commerce department reported on Wednesday that US retail sales fell for the first time in seven months in September. US advanced retail sales dropped 0.3% last month as households slashed spending and pulled back their purchases of automobiles. The decline was the first since February. Data for August was revised up to show retail sales gaining 0.6% instead of 0.4% as previously reported. Expectations had been for retail sales to rise by 0.3% in September. Compared with September of last year, retail sales increased by 4.1%.