Gold Price Prediction – Prices Rise for the Week but Remain Rangebound
Gold prices consolidated and closed the week up 1.5% as the dollar moved sideways, and U.S. yields remained stable. U.S. Existing Home Sales came in stronger than expected, rising to a 14-year high. The Senate confirmed Janet Yellen, who will become the first woman to hold U.S. Treasury secretary.
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Gold prices consolidated on Friday and is trading just above support near the 50-day moving average at 1,859. Resistance is seen near an upward sloping trend line that comes in near 1,939. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 40, up from 21 and above the oversold trigger level. Medium-term negative momentum has decelerated as the MACD (moving average convergence divergence) histogram is printing in the red with a rising trajectory, which points to consolidation.
Existing Home Sales Surge
Sales of previously owned homes rose to a 14-year high, according to the National Association of Realtors. Existing-home sales rose 0.7% in December from November to an annual rate of 6.76 million. The December sales marked a 22% increase from a year earlier. Existing-home sales totaled 5.64 million in 2020, up 5.6% from 2019 and the highest level since the 2006 pace of 6.48 million.