Gold prices continued to break out on Wednesday, and are poised to test higher levels. The dollar continues to slide which paved the way for higher gold prices. US yields were also under pressure. The U.S. ordered the closure of the Chinese Consulate in Houston, accusing China of extensive interference in domestic affairs which was an escalation of bilateral tensions that Beijing called outrageous and unprecedented. US existing home sales jumped June according to the National Association of Realtors.
Trade gold with FXTM
Gold prices finished at 8-year highs and continue to accelerate higher. Target resistance is now seen near the August 2011 highs at 1,912. Support is seen near the 10-day moving average near 1,815. Medium-term momentum has reversed and turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal. The MACD histogram is printing in the black with an upward sloping trajectory points to higher prices. Short-term momentum is also positive as the fast stochastic moved higher and is printing a reading of 96 above the overbought trigger level of 80, which could foreshadow a correction. The RSI also surged higher reflecting accelerating positive momentum and is printing a reading of 78, above the overbought trigger level of 70 which could foreshadow a correction.
US Existing Home Sales Rise
US existing home sales jumped nearly 21% in June compared with May, according to the National Association of Realtors. It was the largest monthly gain since the Realtors began tracking the data in 1968 and came after sharp declines over the previous three months due to the coronavirus pandemic. Sales were still 11.3% lower annually.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Price Forecast – Natural Gas Markets Have Shown Strength Again
- Litecoin, Stellar’s Lumen, and Tron’s TRX – Daily Analysis – July 23rd, 2020
- Gold Price Prediction – Prices Continue to Rally as Geopolitical Fears Kick In
- Las Vegas Sands Looks Overpriced Ahead Of Earnings
- U.S. Dollar Index (DX) Futures Technical Analysis – Needs to Close Under 95.060 to Sustain Downside Momentum
- USD/JPY Price Forecast – US Dollar Rallies Again