Gold Price Prediction – Prices Slip Falling 0.3% for the Week as the Dollar Turns Higher

Gold prices edged lower on Friday as the dollar continued to rebound from its recent lows. Stronger than expected US housing data helped buoy the greenback, despite declines in US yields.  Gold prices finished the week slightly lower declining by 0.3%. Eurozone preliminary August PMI readings were weaker than expected as the July fell to 51.7 versus 52.7 expected, services dropped sharply to 50.1 versus 54.5 expected and 54.7 in July.

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Technical analysis

Gold prices edged lower and continued to consolidate. Prices were unable to recapture support near the 10-day moving average at 1,955. Target support is seen near the 50-day moving average at 1,863. Medium-term momentum remains negative as the MACD histogram is printing in the red with a sliding trajectory which points to lower prices. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal, and continues to accelerate lower.

US Existing Home Sales Surged

US Existing home sales increased by 24.7% in July to an annual rate of 5.86 million, which was the highest rate since December 2006, according to the National Association of Realtors. Expectations were for a 14.2% monthly increase in sales of previously owned homes. The median existing-home price rose 8.5% from a year earlier to $304,100, a record high.