Gold prices moved lower early in the trading session as the dollar gained traction following comments from Mario Draghi that showed concern about
Gold prices moved lower early in the trading session as the dollar gained traction following comments from Mario Draghi that showed concern about inflation and growth. The jobless claims data reported by the U.S. Department of Energy was in line with expectations allowing the dollar to ease which helped the yellow metal gain traction.
Prices pushed through horizontal trend line support during European hours but held support at 1,076, and bounced to close near 1,084. Resistance is seen near the 10-day moving average at 1,105, which is slightly above the September lows at 1,100.
Momentum on the yellow metal is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices. On the other hand, the RSI (relative strength index) which is a momentum oscillator, is printing a reading of 25, which is well below the oversold trigger level of 30 and could foreshadow a correction.
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.