Gold Price Prediction – Prices Edge Lower and Consolidate as the Dollar Gains TractionPrices are trading sideways
Gold prices edged lower and are consolidating just above support levels. The veterans day Holiday in the US helped keep trading in the yellow metal light. The 10-year US treasury yield continued to rise increasing slightly. The dollar moved higher putting downward pressure on gold prices. EU officials reached a compromise on their 7-year budget, helping to pave the way for potentially stronger growth.
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Gold prices edged lower near support levels which coincides with the September lows at 1,848. Resistance is seen near the 10-day moving average at 1,895 and then the 50-day moving average at 1,908. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. The fast stochastic has accelerated lower and is currently printing a reading of 15, below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
EU officials have reached a compromise on the size of its next seven-year budget. Last week, there was a compromise additionally. Together, these two agreements will account for EUR1.8 trillion of spending, with EUR750 billion earmarked for the recovery fund.