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.
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.
This article was originally posted on FX Empire