Gold Price Prediction – Gold Prices Rebound as US Rate Issues Percolate
Gold prices rebounded from session lows, as US yields stabilized, and the dollar started to give back some of its latest gains. Fed Chair Powell is scheduled to testify in front of congress on Wednesday and Thursday, which should provide information on whether Powell is getting influenced by the President. Federal Reserve Chair Jerome Powell’s job is safe, according to Larry Kudlow the NEC director, at least for the moment. The Trump administration is making “no effort” to remove the central bank chief, Larry Kudlow said on Tuesday.
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Technical Analysis
Gold prices rebounded from session lows and closed on an up note. Prices continue to look toppy. Support is seen near the July lows at 1,388. Resistance is seen near the July highs at 1,433. Short term momentum is negative as the fast stochastic recently generated a crossover sell signal. The fast stochastic is accelerating lower reflecting negative short-term momentum. Medium term momentum is negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices. The RSI (relative strength index) is printing a reading of 60, which is in the middle of the neutral range and reflects consolidation.
President Donald Trump has continues to chide Powell for the Fed’s interest rate hikes during the president’s tenure. He has urged the central bank to slash rates, saying repeatedly that the stock market would take off like a rocket ship if rates were lower. As the president fumed about Powell, reports last month said the White House considered demoting or firing the Fed chairman. NEC Chair Larry Kudlow was interviewed on CNBC on Tuesday and said that he does not believe the Fed Chair is in jeopardy of losing his job.