Gold Price Prediction – Prices Edge Higher as the Dollar Turns South

Gold prices edged higher on Monday as the dollar moved lower and U.S. yields eased. The weaker than expected U.S. employment report released on Friday helped weigh on the greenback, paving the way for higher gold prices. Prices appear to hovering in the middle of the upward slopiong range floored by the upward sloping trend line near 1,865.

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Technical analysis

Gold prices rose but ran into resistance near the 10-day moving average at 1,896 .Target resistance is seen near the 10-day moving average at 1,896. The 10-day moving average crossed above the 50-day moving average which shows that a short-term trend is now in place. Short-term momentum is reversing after turning positive as fast stochastic generated a crossover buy signal, and is poised to generate a crossover buy signal. Medium-term momentum has turned negative MACD (moving average convergence divergence) as the MACD (moving average convergence divergence) index generated a crossover sell signal.

The Federal Reserve is Starting its Taper Conversations

The Federal Reserve is in the early stages of a campaign to ready markets for tapering its $120 billion in monthly asset purchases to stimulate the economy. At least five Fed officials have publicly commented on the likelihood of those discussions in recent weeks.