Gold Price Prediction – Prices Rebound as Dollar Slips
Gold prices rebounded as the dollar eased and U.S. yields consolidated. Last week the U.S. 10-year yield broke out, rising nearly 9-basis points, which weighed on gold prices. The yield curve steepened to the highest level since 2017 as the 10-year broke out to fresh highs. Treasury Secretary Yellen was on the tape saying that she believes the U.S. can return to full employment if congress passes the latest stimulus bill.
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Technical analysis
Gold prices continued to rebound, retesting trend line support, which coincides with the 10-day moving average at 1,855. If prices fail to recapture the 10-day moving average and the trend line they will likely retest the February lows 1,785. Target support is seen near the November lows at 17,64. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is negative but decelerating as the MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory, which points to consolidation.
Yellen Pushes for Stimulus
Yellen continued to push for a stimulus bill. The Treasury Secretary said that the U.S. could return to full employment in 2022 if President Joe Biden’s $1.9 trillion coronavirus rescue package is passed, Treasury Secretary Janet Yellen said on Sunday. Long-term unemployment is nearing a historical peak nearly a year since the pandemic began. Nearly 40% of unemployed workers have been out of work for six months. The Bureau of Labor Statistics reported on Friday, with nearly 9 million fewer Americans working now than last February. The unemployment rate fell to 6.3% in January.