Gold Price Prediction – Prices Edge Higher on Higher Import Prices

Gold prices edged higher continued to grind upward as the dollar moved lower along with US yields. The Euro continued to climb as the ECB has given the go ahead to speculate on its upward climb. US import price increased more than expected helping to continue to buoy the price of the yellow metal.

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Technical analysis

Gold prices edged higher forming a doji day which is a sign of indecision after pushing through resistance near a downward sloping trend line resistance seen near 1,945. Short term support is seen near the 10-day moving average near 1,941. Additional support is seen near the 50-day moving average at 1,926. Medium-term negative momentum is decelerating as the MACD histogram is printing in the red with a rising trajectory which points to consolidation. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The relative strength index is moving sideways to higher which is a sign of accelerating positive momentum.

U.S. import prices increased more than expected in August. According to the Labor Department. Import prices rose 0.9% in August. Data for July was revised higher to show import prices accelerating 1.2% instead of gaining 0.7% as previously reported. Expectations had been for import prices, which exclude tariffs, would increase by 0.5% in August. ON a year over year basis import prices fell 1.4% after declining by 2.8% in July. Excluding fuels and food, import prices accelerated 0.7% last month after gaining 0.3% in July. Core import prices shot up 0.9% in the 12 months through August.