Gold Price Prediction – Gold Hits 2-week High as Dollar Slides
Gold prices rose for a 3rd consecutive trading session, to the highest levels since October 21. This comes as the dollar dropped and US yields moved higher. Riskier surged ahead of the US election results, which helped buoy the yellow metal. US factory orders increased for the 5th straight month.
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Technical analysis
Gold prices moved higher on Tuesday testing resistance near the 50-day moving average at 1,914. Support on the yellow metal is seen near the 10-day moving average at 1,896. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 48, up from 28 which reflects accelerating positive momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).
US Factory Orders Rose
U.S. factory orders rose 1.1% in September to mark the 5th straight gain, pointing to a steady recovery in the manufacturing segment of the economy. Expectations had been for a 1% increase. Orders for durable goods made to last at least three years climbed 1.9% in September, the same as the original reading, Orders for nondurable goods such as clothing and food products rose a smaller 0.3%.