Gold Price Prediction – Prices Slip as Yields Rise Buoying the Greenback

Brexit remains in the spotlight
David Becker
Gold ingots and coins

Gold prices moved lower on Monday as US yields moved higher across the interest rate curve, which helped buoy the greenback. The rise in the value of the US dollar paved the way for lower gold prices. Despite the need for a further extension of a Brexit, the pound rallied into the close of the day, as there appears to be many who believe that Johnson will get parliament to eventually vote for a bill he is sponsoring. There appears to be progressing with a deal between the US and China. China’s Vice Premier confirmed progress in trade talks with the US, though no date has been set to resume negotiations before a formal agreement between Trump and Xi in November.


Trade gold with FXTM


Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money


Technical Analysis

Gold prices moved lower and Monday and are poised to test support near an upward sloping trend line that comes in near 1,477. Additional support is seen near the 100-day moving average at 1.455. Resistance is seen near the 10-day moving average at 1,492, and then a downward sloping trend line that comes in near 1,509. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. The fast stochastic is printing in the middle of the neutral range. Medium-term momentum is negative to neutral. The MACD histogram is printing in the red with a flat trajectory that points to consolidation.

Brexit is in the Spot Light


Brexit negotiations continues to capture the attention of the markets. UK PM Boris Johnson will attempt to push through bills that will allow him to move to a hard Brexit. The rally in the pound on Monday likely provides a 50-50 shot that Johnson will get his agreement with the EU over the finish line. The EU is seen likely to grant the UK some extension.

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

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.