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Gold Price Prediction – Prices Rally in Tandem with Riskier Assets
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Senate bill buoys gold
Gold prices moved higher on Wednesday and are poised to test resistance. Prices have been highly correlated to riskier assets, which is surprising. The whipsaw price action that has been occurring in the equity market has been mirrored in gold. The US dollar moved higher but did not create headwinds for the yellow metal. Gold volatility, as reflected by the Gold VIX moved higher and continues to hover near the 27% level.
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Technical Analysis
Gold prices moved higher and are poised to test resistance near the 1,747. Support near the 10-day moving average at 1,698. Short term momentum has whipsawed and turned positive as the fast stochastic generated a crossover buy signal. This happened as the fast stochastic is printing a reading of 72. Medium-term momentum was turning negative but whipsawed and turned positive. The MACD (moving average convergence divergence) histogram is still printing in the black but now the trajectory is rising which points to higher prices.
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About the Author
David Beckerauthor
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.
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