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David Becker
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Gold prices consolidated, moving lower on Tuesday as the dollar continued to consolidate. U.S. Treasury yields surged higher, putting downward pressure on the Yellow metal. This movement followed a more robust than expected home price report, announced by S&P on Tuesday.

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Technical analysis

Gold prices moved lower on Tuesday and continued to trade sideways.  The upward trend remains in place as prices head for resistance near a Fibonacci retracement level of 38.2%, which is seen near 1,828. Target resistance on the yellow metal is seen near the February highs at 1,855. Support is seen near the 10-day moving average at 1,774. The 10-day moving average has crossed above the 50-day moving average which means that a short-term uptrend is now in place. Short-term momentum reversed and turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 73, down from 76, which reflects accelerating negative momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.

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Home Prices Accelerate

Home price gains continue to accelerate as tight supply and strong demand led to bidding wars. Nationally, prices in February rose 12% year over year, up from 11.2% in January, according to the S&P CoreLogic Case-Shiller home price index. The 10-city composite rose 11.7% annually, up from 10.9% in January. The 20-city composite gained 11.9%, up from 11.1% in the previous month. All the gains were in the double digits, except Chicago and Las Vegas.

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