Gold Gas Price Prediction – Prices Fall as Risk off Weighs on Gold

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Updated: May 3, 2020, 14:43 GMT+00:00

Prices consolidate as the dollar rises

Gold Gas Price Prediction – Prices Fall as Risk off Weighs on Gold

Gold prices continued to trade sideways consolidating in a very tight range. The US dollar moved higher generating headwinds for the yellow metal. Gold volatility, as reflected by the Gold VIX moved higher and continues to hover near the 27% level. The risk-off story in the equity markets failed to buoy gold prices which are at times seen as a safe haven asset.

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Technical Analysis

Gold prices moved lower but continued to consolidate moving through support near the 10-day moving average at 1,691 which is now seen as resistance. Additional resistance is now seen near the April highs at 1,747. Target resistance near the August 2012 highs near 1,791. Support is seen near the 50-day moving average at 1,619. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. This happened as the fast stochastic is printing a reading of 76, coming from oversold levels which could foreshadow a continuation of a correction. Medium-term momentum is turning negative and has started to consolidate as the MACD (moving average convergence divergence) histogram is still printing in the black with a declining trajectory which points to consolidation.

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About the Author

David Beckerauthor

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.