Gold Price Prediction – Prices Rally as Alternative Currencies Attract Investors

Gold closes at 6-year high
David Becker
US Dollar and Gold


Gold prices moved higher continuing to break out and hitting a fresh 6-year high. Prices closed at 1,434 and are poised to test the 2019 intraday highs at 1,439. Prices rallied as investors looked to alternative currencies other than the dollar. US jobless claims rose in line with expectations while the Fed Beige book was relatively upbeat.

Trade gold with FXTM

Visit Broker
90% of retail CFD accounts lose money

Technical Analysis

Gold prices broke out to a fresh 6-year high and should continue to experience upward positive momentum. Prices will likely test the July 2019 highs at 1,439 and the next target resistance level is the May 2013 highs at 1,488. A break of that level would lead to a test of the March 2013 highs at 1,618. Support is seen near the 10-day moving average at 1,411. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium term negative momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the red with a rising trajectory which points to consolidation. The RSI (relative strength index) is on the rise reflecting accelerating positive momentum. The current reading of 67, is on the upper end of the neutral range.

Jobless Claims Rise in Line with Expectations

US jobless claims rose 8,000 to  216,000 for the week ended July 13, according to the Labor Department. Data for the prior week was revised to show 1,000 fewer applications received than previously reported. Last week’s increase in claims was in line with expectations. The four-week moving average of initial claims, dipped 250 to 218,750 last week.

The Beige Book ahead of the July 31 FOMC meeting was fairly upbeat.  The economy expanded at a modest pace with little change from the previous report.  It added that employment also grew at a modest pace with continued modest growth expected.  The only negative was concern about the negative impact of trade uncertainty.


Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.