Gold Price Prediction – Prices Trade Sideways, as the Dollar Rises and Yields Climb

Gold remains rangebound
David Becker
Stacks of gold bars

Gold prices moved lower on Monday as riskier assets gained traction across the globe putting upward pressure on US yields which buoyed the dollar. The rally in the greenback paved the way for lower gold prices. The rise in the greenback comes despite slightly better than expected US Eurozone final PMI numbers for October. The strong jobs data released on Friday, continues to buoy US yields.

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

90% of retail CFD accounts lose money

Technical Analysis

Gold prices moved lower on Monday testing support near the 10-day moving average at 1,499. Additional support is seen near the 100-day moving average at 1,472. Resistance is seen near the October highs at 1,517. Prices are rangebound and volatility is declining. Short term momentum is positive as the fast stochastic generated a crossover buy signal, and is accelerating higher. The fast stochastic is printing above the overbought trigger level of 80 which could foreshadow a correction. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with an upward sloping trajectory that points to higher prices.

EU PMI’s Rise

The eurozone final manufacturing PMI printed 45.9 for October, slightly better than the flash reading of 45.7.  Germany’s final PMI came in at 42.1, slightly higher than the 41.9 flash reading. Germany is solidly in contraction territory.  Spain’s PMI surprised on the downside at 46.8 versus the initial flash of 47.7 in September as new orders disappointed with firms highlighting political uncertainty.  Italy’s reading was right on expectations at 47.7 versus 47.8 in September, with new orders showing the 15th consecutive month of contraction.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US