Gold Price Prediction – Prices Rise but Remain Rangebound

Gold prices continued to chop sideways and remain rangebound.  Gold prices moved slightly higher despite a rise in the greenback as U.S. yields tumbled lower. There is a two-day Fed meeting this week. Most expect the Fed to accelerate its tapering and for individual forecasts to shift, reflecting an inflation picture that is not transitory. The Fed is now expected to raise interest rates twice in 2022.

Technical Analysis

Gold prices moved higher despite strength in the greenback as U.S. yields dropped. Support is seen near the 10-day moving average at 1,780. Additional support on the yellow metal is seen near the September lows at 1,721. Resistance is seen near the 50-day moving average at 1,796. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum is poised to turn positive as the MACD (moving average convergence divergence) index is about to generate a crossover buy signal.

Looking Forward

In addition to the Fed meeting, the U.S. will release both Producer prices, which are expected to come in 9% and 7%, excluding food and energy. The Commerce Department will also release U.S. Retail sales later in the week.