Gold Price Prediction – Prices Rise Slicing Through Resistance as the Dollar Eases

Gold prices moved higher rebounding for a second consecutive trading session. Gold prices were able to gain traction as the dollar moved lower and US treasury yields eased. Gold seemed to hit resistance just as the US 10-year treasury found support. US CPI came out in line with expectations leading to the biggest annual gain in a year

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Technical analysis

Gold prices moved higher on Wednesday rebounding for a second consecutive trading session and edging above resistance near the 10-day moving average at 1,720. Target resistance is now seen near the 50-day moving average at 1,1819. Additional support is seen near the June lows at 1,670.   Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The fast stochastic has moved out of oversold territory which also reflects positive momentum.  Medium-term momentum remains negative as the AMCD histogram is printing in negative territory but the trajectory is rising which points to consolidation.

US CPI Rises

U.S. consumer prices increased solidly in February as the cost of gasoline rose further. The Labor Department reported that their consumer price index increased 0.4% last month after rising 0.3% in January. In the 12 months through February, the CPI gained 1.7%, the largest rise since February 2020, after climbing 1.4% in the 12 months through January. Excluding the volatile food and energy components, the CPI nudged up 0.1% after being unchanged for two straight months. The core CPI was lifted by rises in the costs of recreation, medical care and motor vehicle insurance.