David Becker
Add to Bookmarks

Gold prices moved higher as the dollar consolidated and gained traction and U.S. yields declined. The dollar’s decline has coincided with the market having second thoughts about the timing of the Fed’s first hike.  With a delay due to the accelerating spread of the coronavirus and U.S. treasury yields sliding, gold prices have been given a reprieve.

Trade gold with FXTM

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Visit Broker

82% of retail CFD accounts lose money

Technical analysis

Gold prices moved higher on Tuesday bouncing from support. Prices remain above support near the 50-day moving average seen near 1,751, and the 10-day moving average near 1,754.  Target resistance on the yellow metal is seen near the February highs at 1,855. The 10-day moving average has crossed above the 50-day moving average which means that a short-term up trend is now in place. Short-term momentum reversed and turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 89, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.


The dollar Eases in Tandem with Rate Decline

The dollar’s decline has coincided with the market view of a future hike. He 10-year yield has given back gains and the 1-year forward-forward is now pricing in 56 basis points of tightening, projecting earlier rate hikes.  The Fed believes rates will remain unchanged about a year longer than the market and the recent change in the markets tune has weighed on the greenback.

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

Trade With A Regulated Broker