Gold Price Prediction – Prices Rise on Weak Import Prices

Gold prices rallied Tuesday reversing Monday’s decline. The dollar moved down, led by gains in the Euro, which broke out. US yields moved higher as riskier assets rallied. The dollar eases as U.S. import prices rebounded less than expected in November as an increase in the cost of petroleum products was offset by cheaper food and motor vehicles.

Trade gold with FXTM

Technical analysis

Gold prices traded higher but continue to consolidate. Prices made a higher high and a higher low but were moving through resistance. near the 10-day moving average at 1,843, which is now seen as support. Additional support is seen near an upward sloping trend line that comes in near 1,781.  Resistance is seen near the 50-day moving average at 1,873. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive but is decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a decelerating trajectory, which points to consolidation.

U.S. Import Prices Rise Less than Expected

U.S. import prices rebounded less than expected in November. The Labor Expectations were for import prices to advance 0.3% in November. On a year over year basis, import prices decreased 1.0% after falling by the same margin in October. Petroleum prices increased 2.1% last month after slipping 0.1% in October. Excluding petroleum, import prices were flat after edging down 0.1% in October.