Gold Price Prediction – Prices Slip on Dollar Strength
Gold prices moved lower on Friday and finished the week in the red down 0.6%. The decline in the yellow metal came as the dollar rebounded. U.S. Yields moved higher despite a smaller than expected gain in the Markit PMI services index. It appears that vendors are concerned about the recent spread of the delta variant of the COVID-19 virus.
Gold prices moved lower on Friday but remain rangebound. Support is seen near the 20-day moving average at 1,799. Resistance is seen near the 50-day moving average at 1,835. The consolidation is tightening and building energy. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is decelerating. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation. Despite the sideways price action, gold continues to trade in a short-term uptrend.
U.S. Service Sectors Decelerates
The service sector in the U.S. likely pulled back in July according to Markit Intelligence company Markit. The Markit, July U.S. services, flash PMI 59.8 versus 64.8 expected. The final prior reading for May was 64.6. In the service sector some firms noted customer hesitancy amid significant hikes in selling prices. Firms noted the lowest degree of optimism since February. Additionally, new export orders eased.