Gold Price Prediction – Prices Whipsaw and Form Outside DayGold drops following easing concerns over a US war with Iran
Gold prices whipsawed initially moving higher during the Asian trading session following news that Iran had sent ballistic missiles into Iraq targeting a US airbase. Prices surge hitting a fresh 6-year high. By the time that London opened, prices had consolidated just slightly above Tuesday’s close. News that there were no US casualties and that Iran has said that they had sent a proportional response to the killing of their top military leader, helped reduce tension and paved the way for lower gold prices. Gold eventually slipped into negative territory early during the North American trading hours following commentary from President Donald Trump that seemed to pull back on the Presidents rhetoric.
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Gold prices whipsawed surging higher and closing lower which forms an outside day. This is a reversal pattern and could lead to a selloff in prices as sentiment changes. At the very least prices will continue to experience volatility. Target resistance is now seen near the October 2012 highs at 1,795. Additional short term support is seen near the 10-day moving average at 1,533. The 10-day moving average recently crossed above the 50-day moving average which shows that a short term up trend is now in place. The daily RSI (relative strength index) reverved showing that upward momentum is fading and the currency reading is 76, rising from 86 which reflects decelerating positive momentum. The RSI is above the overbought trigger level of 70, and also points to a potential future correction. Very short term momentum is negative as the fast stochastic generated a crossover sell signal in overbought territory. The current reading of 76, below the overbought trigger level of 80 which reflects decelerating positive momentum.
Private payroll growth ended 2019 on a strong note, with companies adding 202,000 positions in December according to a report Wednesday from ADP and Moody’s Analytics. This eclipsed the 150,000 consensus estimate ahead of the government’s official count that will be released Friday. Economists expect the Labor Department’s tally to show a gain of 160,000.