Gold Price Prediction – Prices Rise on Moving Average Crossover

Gold prices moved sideways edging slightly higher following the news over the long weekend that President Trump had signed the US government stimulus bill. The Greenback rose slightly in tandem with yields as riskier assets rose. The House passed a new bill that would increase the stimulus checks from $600 per person to $2,000 per person.

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Technical analysis

Gold prices moved higher but continue to trade in a tight range. Support is near the 10-day moving average near 1,872, 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.

The House Votes to Increase Federal Payments

The House voted to increase the second round of federal direct payments to $2,000 as Democrats embrace President Donald Trump’s calls to put more money in Americans’ pockets.The measure would boost the stimulus checks in the year-end coronavirus relief and government funding package to $2,000 from $600.