FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
117,081,668Confirmed
2,600,048Deaths
92,655,967Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

 

Gold prices moved higher on Wednesday, as the dollar consolidated and U.S. yields remained stable. Gold volatility is also trading sideways, hovering near the 23% range. On Wednesday, the U.S. inaugurated a new President. Riskier assets moved higher, which helped buoy gold prices. Additionally, the commentary from likely Treasury secretary Janet Yellen shows that stimulus will be added and weigh on the dollar.

Advertisement
Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

Trade gold with FXTM

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Visit Broker

82% of retail CFD accounts lose money

Technical analysis

Gold prices rallied on Wednesday bouncing from an upward sloping trend line that comes in near 1,825. Resistance is seen near an upward sloping trend line that comes in near 1,939. While the trend is more of a consolidating, the 10-day moving average crossed below the 50-day moving average which means that a short-term downtrend is in place. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 21, up from 18 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.

Advertisement

Yellen Takes Agreeable Tone

During here meeting for confirmation to the Treasury Secretary, Janet Yellen agree with all of her questioners but pushed back on fiscal policy, saying there was a need for another large fiscal package.  The fiscal support is shaping up to be a key test for the Biden administration.

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

Trade With A Regulated Broker

  • Your capital is at risk