Gold Price Prediction – Prices Rose as the Dollar Slid and U.S. Yields Dropped
Gold prices moved higher on Wednesday following a sharper than expected U.S. PPI report. This large rise in wholesale prices was offset by comments from Jerome Powell, who said that the economy needs to improve more before the central bank changes its accommodative policy. U.S. yields tumbled following the Fed Chairs’ comments. These move-in yields weigh on the U.S. dollar, paving the way for higher gold prices.
Technical analysis
Gold prices moved higher and are trading below resistance near the 50-day moving average at 1,837. Support is seen near the 10-day moving average at 1,800. Short-term momentum has flip-flopped, turning positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the fast stochastic is printing a reading of 92, above the overbought trigger level of 80, which could foreshadow a correction. Medium-term momentum has shifted positively as the MACD (moving average convergence…