Advertisement
Advertisement

Gold Price Prediction – Prices Edge Higher Despite Rising 2-Year Yields

By:
David Becker
Published: Oct 27, 2021, 18:05 GMT+00:00

The yield curve continues to flatten

Gold Price Prediction – Prices Edge Higher Despite Rising 2-Year Yields

Gold prices edged higher on Wednesday, bouncing near trend line support which was former resistance. The dollar eased slightly, which provided tailwinds for the yellow metal. Yields were and the yield curve flattened as the 2-year yield hit the highest level at 49-basis points since March 2020 at the beginning of the pandemic.

Regulated By:FCA, FSCM, SCA, CMA
Headquarters:Mauritius
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:3000 (FSCM), 1:2000 (CMA)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices bounced higher and held above trend line resistance which is now support at 1,790. Additional support is seen near the 10-day moving average at 1,785. Resistance is seen near the September highs at 1,830. The 10-day moving average crosses above the 50-day moving average, which means a short-term uptrend will be in place. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal. 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). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

Mortgage Rates Rise to an 8-Year High

Mortgage rates rose to an 8-year high, driven by higher Treasury yields. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 3.30% from 3.23%, with points decreasing to 0.34 from 0.35 for loans with a 20% down payment. That rate was 30 basis points lower one year ago.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Advertisement