Gold Price Prediction – Prices Rise Despite Dollar Gains


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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