Advertisement
Advertisement

Gold Price Prediction – Prices Rise Despite Dollar Gains

By:
David Becker
Published: Jul 1, 2021, 17:44 GMT+00:00

ISM misses expectations

Gold Price Prediction – Prices Rise Despite Dollar Gains

Gold prices moved higher, bouncing from support but remain rangebound. Gold faces headwinds as the dollar continued to rally. Since gold is priced in U.S. dollars, a strong dollar generated resistance for gold since it becomes more expensive in other currencies. U.S. Yields moved lower, following a weaker than expected ISM manufacturing report.  A positive sign for the economy was the drop in unemployment claims.

Regulated By:FCA, FSCM, CMA
Headquarters:Cyprus
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:2000 (CMA), 1:3000 (FSCM)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices moved higher but remain range-bound due to a strong greenback. Support is seen near an upward sloping trend line near $1,762. A break of this level would lead to a test of target support near an upward sloping trend line that comes in near $1,733.  Resistance is seen near the 10-day moving average at 1,774.5.  The 10-day moving average has crossed below the 100-day moving average, meaning that a short-term downtrend is now in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold. The current reading on the fast stochastic is 19, below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in negative territory with a rising trajectory which points to consolidation.

ISM Misses Expectations

The Institute for Supply Management reported on Thursday that its index of national factory activity slipped to 60.6 last month, the lowest reading since January. Expectations were for the index to dip to 61.0 in June. A global shortage of semiconductors is undercutting the production of motor vehicles, electronics and household appliances. The ISM survey’s measure of prices paid by manufacturers jumped to a record 92.1 last month from a reading of 88.0 in May.

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