Gold Price Prediction – Prices Rise on Risk of Session
Gold prices edged higher as the yellow metal benefited from safe-haven status. Riskier assets took it on the chin as concerns of a new South African COVID-19 strain hammered stocks globally. The dollar reversed course as U.S. yields tumbled as the fear trade moved into full bloom. It was like the markets hit the panic button.
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Technical analysis
Gold prices moved, holding just above support is seen near an upward sloping trend line that comes in near 1790. This level coincides with the 50-day moving average at 1,790. Resistance is seen near the 10-day moving average at 1,825. Medium-term momentum has turned negative as the MACD (moving average convergence divergence index) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic is printing a reading of 18, below the oversold trigger level of 20.
The feat trade dominated market activity globally. The U.S. had a short week due to the observance of the Thanksgiving Holiday. Generally, riskier assets benefit through November, but the fear that the variant could spread overwhelmed market participants.