Gold Price Prediction – Prices Rise as Chinese Delegation Skips Farm Trip to MontanaTrade issue buoy gold prices
Gold prices moved higher on Friday as headline risk continues to be the market mover. Trade developments buoyed safe haven assets like as a Chinese delegation canceled a visit to US farms in Montana. US yields moved slightly lower and the dollar traded sideways, down slightly. Trade will likely continue to be the driver of safe-haven assets, as there has been little fallout from the attacks on several Saudi oil facilities last weekend.
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Gold prices moved higher recapturing resistance which is now seen as short-term support near the 10-day moving average at 1,496. Additional support is the 50-day moving average at 1,483. Resistance on the yellow metal is seen near the September highs at 1,531. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal in oversold territory. The upward trajectory of the fast stochastic points to rising momentum. Medium-term momentum is turning, as it appears the MACD (moving average convergence divergence) will generate a buy signal if prices continue to trend.
Chinese Delegation Cancels on Farmers
A Chinese delegation canceled a visit to US farms in Montana according to the Montana Farm Bureau. President Donald Trump had said China would increase its purchases of US agricultural products as part of a bilateral trade deal. The cancellation may be seen by some investors as a sign the two countries are far apart on a trade deal. A trade deal is likely the only piece of news that will lift riskier assets. Trade will continue to be the tail that wags the dog. Even if an initial agreement was signed between the US and China, one tweet by President Trump could generate volatility in the markets.