Gold Price Prediction – Gold Consolidates After 2% Weekly Rise
Gold prices consolidate their weekly gains on Friday as the dollar rebounded. The Greenback fell to a 33-month low on Thursday and continued to lift the week’s commodity complex. US yields moved higher despite a decrease in riskier assets. US leading economic indicators came out slightly better than expected while the US current account deficit widened by more than expected.
Your capital is at risk
Trade gold with FXTM
Technical analysis
Gold prices traded lower on Friday finishing the week up 2.18%, above support near the 50-day moving average near 1,871. Target resistance is now seen near the November highs at 1,960. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought. The current reading on the fast stochastic is 89, above the overbought trigger level of 80, which could foreshadow a correction. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.
Leading Economic Indicators Beat Expectations
The leading economic index increased 0.6% last month, according to the Conference Board. That was a bit better than Wall Street had forecast. The index had risen 0.8% in October and 0.7%. The U.S. current-account deficit, a measure of the nation’s debt to other countries, rose 10.6% largely in the third quarter because of an increase in the trade gap on goods.