Gold Price Prediction – Prices Slide as Dollar Trends Higher
Gold prices moved lower, declining by 0.5% and finishing the week down 0.8%. The week can be summarized by sideways price action as the dollar The dollar moved higher on Friday and closed up nearly 1% for the week. Yields moved lower as the market attempted to absorb who might have the best chance to be Fed Chair. Jerome Powell is the incumbent but his term is nearly up. Lael Brainard is the Vice-Chair and is meeting with Senators to take the temperature of her nomination.
Gold prices moved lower and continued to trade sideways as it could not break through trend line resistance near 1,866. Target resistance is seen near the June highs at 1916. Support is seen near the 10-day moving average at 1,852. The 10-day moving average has crossed above the 50-day moving average, which means a short-term uptrend is now in place. Prices have moved out of overbought territory declining to a reading of 77 which reflects accelerating negative momentum. Medium-term positive momentum is decelerating as the MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.
As Biden attempted to push through a social program that could not fit into the infrastructure plan, passed the house following news that the nonpartisan Congressional Budget Office offered its evaluation of the Biden administration’s Build Back Better initiative. It forecasts $1.636 trillion in spending over the next 10-years and almost $1.27 trillion in revenue. That would generate new deficit spending of -$367 billion.