Gold Price Prediction – Prices Rise Despite Dollar Gains

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Gold prices moved higher, bouncing from support but remain rangebound. Gold faces headwinds as the dollar continued to rally. Since gold is priced in U.S. dollars, a strong dollar generated resistance for gold since it becomes more expensive in other currencies. U.S. Yields moved lower, following a weaker than expected ISM manufacturing report.  A positive sign for the economy was the drop in unemployment claims.

Technical analysis

Gold prices moved higher but remain range-bound due to a strong greenback. Support is seen near an upward sloping trend line near $1,762. A break of this level would lead to a test of target support near an upward sloping trend line that comes in near $1,733.  Resistance is seen near the 10-day moving average at 1,774.5.  The 10-day moving average has crossed below the 100-day moving average, meaning that a short-term downtrend is now in place. Short-term momentum has turned positive as the fast stochastic generated a…

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