Gold Price Prediction – Prices Edge Higher and Close up More than 2.5% for the Week
Gold prices moved higher on Friday finishing the week up 2.6% as the dollar moved lower and US yields declined. This week was full of several data points that were mixed. While Housing starts were worse than expected, jobless claims and consumer sentiment were better than expected. The Fed met this week, but investors were not impressed and sold off riskier assets.
Trade gold with FXTM
Gold prices moved higher continuing to rise for the second consecutive trading session after bouncing at support near the 50-day moving average at 1,935. Short term support is seen near the 10-day moving average near 1,946. Target resistance is seen near the September highs at 1,979. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). Short-term momentum is flat to negative as the fast stochastic recently generated a crossover sell signal. The relative strength index is moving sideways to higher which is a sign of accelerating positive momentum.
Sentiment Continues to Climb
The University of Michigan reported that the U.S. consumer sentiment index in September was 78.9, up from 74.1 in the prior month. Expectations had been for consumer sentiment to rise to 75.9. The index covers how consumers view there personal situation as well as business and buying conditions.