Gold Price Prediction – Gold Rallies as the Dollar Eases

Gold Price Prediction – Gold Rallies as the Dollar Eases

Gold prices rose for a second consecutive trading session, and the yellow metal prepares to test higher level. The price action is accelerating higher and poised to test the upper end of a wide range. The dollar index rallied, moved lower on Friday helping gold prices gain traction. Yields were slightly lower, helping to buoy the greenback. Both the 2-year yield and the 10-year yield moved lower. The decline in yields comes despite an uptick in the regional Chicago PMI.

Technical Analysis

Gold prices rallied for a second consecutive trading session. Support is seen near the 10-day moving average at $1,805. Resistance is seen near a downward sloping trend line at $1,867. The 10-day moving average has crossed above the 50-day moving average which means that a short-term up trend is now in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices. The 10-day moving average is poised to cross above the 50-day moving average, which means a short-term uptrend