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Gold Price Prediction – Prices Rebound but Remain Under Pressure

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David Becker
·1 min read
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Gold prices rebounded after testing lower levels on Tuesday, edging up to resistance levels. U.S. Treasury yields moved lower along with the U.S. dollar which provided the backdrop of higher gold prices. The Atlanta Fed increased its forecast of Q1 GDP, expecting it will now show that the U.S. economy expanded by 10%.

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Technical analysis

Gold prices attempted to recapture resistance making a lower low and a higher high which is a sign of indecision. Resistance is seen near prior trend line support seen near 1,765. Target support is seen near the June lows at 1,670. Additional resistance is seen near the 10-day moving average at 10-day moving average at 1,778. Prices have moved out of oversold territory as the relative strength index (RSI) is printing a reading of 32, up from 28 which is a sign of accelerating positive momentum. Medium-term momentum flip-flopped and turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.

The Fed Raises is GDP Forecast

The Atlanta Federal Reserve, which tracks US GDP, indicates a 10% gain for the first three months of the year. That comes on the heels of a report Friday showing that personal income surged 10% in January, thanks largely to $600 stimulus checks from the government.

This article was originally posted on FX Empire

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