FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
113,137,507Confirmed
2,509,756Deaths
88,753,918Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

Gold prices moved lower on Tuesday following the long US holiday weekend. Gold prices were unchanged on Monday with low volume. US yields shot higher on Tuesday rising 7-basis points and hitting the highest levels seen since February 2020. The upward momentum in US yields is putting upward pressure on the US dollar and weighing on gold prices. The German Zew investor survey was mixed with the current situations index pointing toward a deteriorating investment backdrop.

Trade gold with FXTM

Advertisement
Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Visit Broker

82% of retail CFD accounts lose money

Technical analysis

Gold prices moved lower and are poised to break down as they are testing support which is an upward sloping trend line that comes in near $1,789. A break of this level would lead to a test of the November lows at 1,764.  Resistance is seen near the 10-day moving average at 1,822. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line the 9-day moving average of the MACD line).

Advertisement

ZEW Shows Mixed Results

The Zew current situation index fell to -67.3 from -66.4.  This reading is at the worst level since August 2020.  The expectations component defied expectations for weakness.  It rose to 71.2 from 61.8. It is the strongest since last September.  The eurozone ZEW expectations rose to 69.6 from 58.3.  It is also the highest since last September’s peak.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk