Gold Price Prediction – Prices Slide Falling 0.5% for the WeekSpending rises faster than expected
Gold prices moved lower as the dollar consolidated. U.S. Treasury yields moved higher following stronger than expected consumer income and spending numbers reported on Friday by the Commerce Department. The dollar recovered some of its weekly losses but has been under pressure. Eurozone GDP came in worse than expected which weighed on the EUR/USD and capped the upside movements in gold prices.
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Gold prices eased on Friday giving back some of the gains experienced earlier in the week. Resistance is seen near former support near the 10-day moving average at 1,778. Target resistance is seen near the Fibonacci retracement level of 38.2%, which is seen near 1,828. Support is seen near the 50-day moving average at 1,745. 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 is negative but consolidating as the fast stochastic started to consolidate. Medium-term momentum is poised to turn negative as the MACD (moving average convergence divergence) index is above to generate a crossover sell signal. The MACD histogram is printing in positive territory but also poised to generate a crossover sell signal.
Consumer Spending Rose
March personal income increased by 21.1%, which was the highest since the agency began recording these figures going back to 1959. This scenario is the result of new $1,400 stimulus checks. Spending was also up sharply, increasing 4.2%, which was the steepest month-over-month increase since last summer.