Advertisement
Advertisement

Gold Price Prediction – Prices Whipsaw and Close Lower

By:
David Becker
Published: Oct 5, 2021, 18:02 UTC

The dollar finds a foothold

Gold Price Prediction – Prices Whipsaw and Close Lower

Gold prices edged lower on Tuesday but rebounded from session lows. The dollar found traction after declining for 2 consecutive trading session. The drop in the greenback came despite higher Treasury yields. Since gold is priced in U.S. dollars, a stronger U.S. currency makes gold less attractive in other currencies. The Atlanta Federal Reserve is forecasting gross domestic product growth braking to a 2.3% annualized rate in the third quarter. The U.S. Trade Deficit rallied to a record high in August.

Regulated By:FCA, CySEC , FSCA, FSCM
Headquarters:Cyprus
Foundation Year:2011
Min Deposit:$10
82% of retail CFD accounts lose money
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:30 (CySEC ), 1:500 (FSCA), 1:3000 (FSCM)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, , Local Deposit, , Maestro, Visa, Mastercard
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Mastercard, , , PerfectMoney, Maestro, Visa
Products:Currencies, Commodities, Indices, Stocks
Trading Platforms:MT4, MT5, ,
Trading Desk Type:No dealing desk, ECN, Market Maker
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

Technical analysis

Gold prices closed lower but well off the session lows. Resistance is seen near the 50-day moving average at 1,780. Support is seen near the 10-year moving average at 1,752. Short-term momentum is positive as the fast stochastic recently generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index 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 positive territory with an upward sloping trajectory which points to higher prices.

Trade Deficit Hits Record

The U.S. trade deficit surged to a record high in August, boosted by imports. According to the Commerce Department, the trade deficit surged 4.2% to $73.3 billion in September, the highest since the government. Expectations were for the trade gap to widen to $70.5 billion.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?

Advertisement