Gold Price Prediction – Prices Rise but Fail to Break Out

Momentum remains positive
David Becker

Gold prices formed a doji day after attempting to break out above trend line resistance on Friday. The rally initially came as the dollar moved higher which is counter-intuitive. US yields were also on the rise as risking assets continued to gain traction. Momentum remains positive, despite prices falling short of a convincing breakout level.

Technical Analysis

Gold prices moved higher pushing through trend line support and surging higher but closing near the open forming a doji day. Prices closed at trend line resistance near 1,504. The next level of target resistance is seen near the October highs at 1,519. Support is seen near the 10-day moving average at 1,491. Additional support is seen near the 100-day moving average at 1,462. Short term momentum has turned positive, after recently generating a crossover buy signal. The fast stochastic is printing in the middle of the neutral range. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with a rising trajectory that points to higher prices.

US-Chinese Trade Negotiations Lift Gold Prices

China is now beginning to negotiate and attempt to slightly alter the current trajectory of phase 1 of the trade deal. China is offering to purchase 20 billion a year of US agricultural products which is the amount purchase in 2017 if the US will return tariffs back to the 2017 levels. This might make the phase 1 portion of the deal more difficult than previously expected. President Trump was on the tape on Friday claiming that a deal was in reach.

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

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.