Gold Price Prediction – Prices Rise Led as the Dollar Eases

Gold prices moved higher as the dollar headed lower and U.S. yields moved sideways. Traders remain concerned about the coronavirus’s spread as the lack of distribution of vaccines in the U.S. On Wednesday, the U.K. government approved the Astrazeneca vaccine, which helped buoy riskier assets. The trend in gold prices continues to look favorable

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Technical analysis

Gold prices moved higher and are trading in a relatively tight range. Support is near the 10-day moving average near 1,876, with resistance seen near the December highs at 1,906. The 10-day moving average crossed above the 50-day moving average, which means a medium-term uptrend is now in place.  Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive to neutral as the MACD (moving average convergence divergence) histogram prints in the black with a flattening trajectory, which points to consolidation.

U.S. Home Prices Rose

U.S. home prices jumped in October to a 6-year high as a pandemic-fueled buying rush drives the number of available properties for sale to record lows. That combination of strong demand and limited supply pushed home prices up 7.9% in October compared with 12 months ago, according to Tuesday’s S&P CoreLogic Case-Shiller 20-city home price index. That’s the largest annual increase since June 2014.