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Gold Price Prediction – Prices Trade Sideways for the Week

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David Becker
·1 min read
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Gold prices attempted to move but were unable to gain traction. Prices were nearly unchanged for the week, declining by approximately 0.2%. Despite the lackluster price action implied volatility on gold increased by 2 percentage points or 10% to 21, from 19% at the close during the prior week. The dollar moved lower, helping to buoy gold prices, but US yields rose despite a softer than expected US pending home sales report.

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Technical analysis

Gold prices were nearly unchanged, forming a weekly doji. Prices remain below resistance near the 10-day moving average at 1,849. Support is seen near the January lows at 1,802. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum has decelerated as the MACD (moving average convergence divergence) histogram prints in the red with a flat trajectory, which points to consolidation.

Pending Home Sales Slip

Home purchase contracts declined in December. The pending home sales index from the National Association of Realtors fell 0.3% month-to-month, the fourth straight monthly decline. Pending sales were, 21.4% higher than December 2019, and this was the highest December reading on record. At the end of December, inventory stood at just 1.07 million homes for sale, down 23% year over year.

This article was originally posted on FX Empire

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