Advertisement
Advertisement

Gold Price Prediction – Prices Rebound as Dollar Slips

By:
David Becker
Published: Feb 8, 2021, 19:39 UTC

Gold tests critical resistance

Gold Price Prediction – Prices Rebound as Dollar Slips

Gold prices rebounded as the dollar eased and U.S. yields consolidated. Last week the U.S. 10-year yield broke out, rising nearly 9-basis points, which weighed on gold prices. The yield curve steepened to the highest level since 2017 as the 10-year broke out to fresh highs. Treasury Secretary Yellen was on the tape saying that she believes the U.S. can return to full employment if congress passes the latest stimulus bill.

Trade gold with FXTM

Regulated By:FCA, CySEC , FSCA, FSCM
Headquarters:Cyprus
Foundation Year:2011
Min Deposit:$10
82% of retail CFD accounts lose money
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:30 (CySEC ), 1:500 (FSCA), 1:3000 (FSCM)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, , Local Deposit, , Maestro, Visa, Mastercard
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Mastercard, , , PerfectMoney, Maestro, Visa
Products:Currencies, Commodities, Indices, Stocks
Trading Platforms:MT4, MT5, ,
Trading Desk Type:No dealing desk, ECN, Market Maker
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices continued to rebound, retesting trend line support, which coincides with the 10-day moving average at 1,855. If prices fail to recapture the 10-day moving average and the trend line they will likely retest the February lows 1,785. Target support is seen near the November lows at 17,64. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is negative but decelerating as the MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory, which points to consolidation.

Yellen Pushes for Stimulus

Yellen continued to push for a stimulus bill. The Treasury Secretary said that the U.S. could return to full employment in 2022 if President Joe Biden’s $1.9 trillion coronavirus rescue package is passed, Treasury Secretary Janet Yellen said on Sunday. Long-term unemployment is nearing a historical peak nearly a year since the pandemic began. Nearly 40% of unemployed workers have been out of work for six months. The Bureau of Labor Statistics reported on Friday, with nearly 9 million fewer Americans working now than last February. The unemployment rate fell to 6.3% in January.

About the Author

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.

Did you find this article useful?

Advertisement