Gold Price Prediction – Prices Rise Testing Resistance as COVID Cases Accelerate

Gold prices moved higher on Friday testing trend line resistance as despite a risking dollar and riskier assets that traded under pressure. The continued spread of COVID-19 in the United States has prompted Apple to close some of its stores in southern states which gave gold prices a boost. US yields moved lower, despite a larger current account report that showed a dip for the second consecutive quarter.

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Technical analysis

Gold prices moved higher testing trend line resistance which comes in near $1,745. Support on the yellow metal is seen near the 10-day moving average at 1,725 Target support is seen near the 50-day moving average at $1,716. Short term momentum has turned positive as the fast stochastic generated a crossover buy. Medium-term momentum if flat but turning positive as the MACD histogram is printing near the zero-index level with and upward sloping trajectory which points to higher prices. The MACD line also generated a crossover buy signal which points to higher prices.

Current Account Deficit Declined

The US current account deficit dipped to a two-year low in the first quarter according to the Commerce Department. The flow of goods, services and investments into and out of the country, slipped 0.1% to $104.2 billion, the smallest since the second quarter of 2018. A drop in imports and income payments narrowly outpaced a decline in exports and income receipts.