Negative momentum is accelerating
Gold prices rebounded from session lows and closed in the black on Tuesday, despite a stronger US dollar. US yields also remain elevated but edged lower. German data is showing some small signs of improvement. President Donald Trump in a speech before the Economic Club of New York on Tuesday to hammered the Federal Reserve, saying that although the stock market has surged 45% since he was elected, if the Fed has eased rates further the returns would be 25% higher than they currently are according to President Trump.
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Gold prices rebounded from session lows to close in the black. Prices made a lower low rebounding from support near 1,445. Short term resistance is seen near the 100-day moving average at 1,477, and then the 10-day moving average at 1,484. Support on the yellow metal is seen near the October lows at 1,426. Short term momentum has turned negative. The fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 10, well above the oversold trigger level. 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). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
Germany, the EU’s large economy, reported slightly better than expected survey data. The ZEW Survey’s current situation component remains weak at -24.7 in November, the expectation component came in at -2.1, which was the highest the index has been in the past 6-months. It also far better than the -13.0 expected and the -22.8 figure seen last month.
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.