Gold Price Prediction – Prices Tumble as Safe Haven Bid Declines
Gold prices tumbled on Wednesday as traders absorbed geopolitics and determined that risk off was not in vogue. US yields moved higher putting upward pressure on the US dollar which paved the way for lower gold prices. Gold started the session on the offensive as riskier assets came under pressure, but during the session commentary from both sides of the US political isle put downward pressure on gold prices.
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Gold prices rallied reversed course on Wednesday moving lower and testing support near the 10-day moving average at 1,505. Additional support is the 50-day moving average at 1,490. Resistance is seen near the weekly highs at 1,535. Short term momentum is positive the halt in the upward movement of the fast stochastic points to consolidating. Medium-term momentum is turning, as it appears the MACD (moving average convergence divergence) is poised to generate a crossover buy signal if prices continue to trend. 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 crossover has been halted which could point to consolidation.
Market sentiment whipsawed following the formal launch of an impeachment inquiry. As expected this quickly became a political hot potato. The notes of the conversation between President Trump and the President of Ukraine was released. Both side of the Ailes took what they wanted from the information. What it clear is that it seems that Trump as the Ukrainian President to look into Candidate Joe Biden’s son. What is unclear is whether Trump would hold back aid, which he told his Chief of Staff to do, 1-week before the conversation.