Gold Price Prediction – Prices Consolidate Despite Robust Retail Sales

By:

Published: Oct 16, 2020, 18:14 GMT+00:00

Gold consolidates and continues to trade sideways

Gold Price Prediction – Prices Consolidate Despite Robust Retail Sales

Gold prices barely moved on Friday inching lower and trading in a very tight range. The dollar declined slightly after rallying on Thursday as US yields consolidated. The movement in the dollar and yield came despite a stronger than expected US retail sales report, that seemed to be countered by a slight dip in US consumer confidence.

Trade gold with FXTM

FXTM Review

Regulated By:FCA, CMA, FSCM

Headquarters:Cyprus

Foundation Year:2011

Min Deposit:$200

Start Trading

Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.

Official Site:

Demo Account:Open Demo Account

Max Leverage:1:30 (FCA), 1:2000 (CMA), 1:3000 (FSCM)

Publicly Traded:No

Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, , , , FasaPay, , Local Transfer, PerfectMoney, Debit Card

Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,

Products:Currencies, Commodities, Indices, Stocks, Crypto

Trading Platforms:MT4, MT5,

Trading Desk Type:No dealing desk

OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform

Mobile Trading Options:Android, iOS

Technical analysis

Gold prices edged lower trading sideways and barely moving on Friday. Prices remain above short term support is seen near the 10-day moving average at 1,902. Resistance is seen near the 50-day moving average at 1,927. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal on the upper end of the neutral range. Medium-term momentum remains neutral as the MACD histogram prints in the black with an upward sloping trajectory that points to a slow trend higher.

Retail Sales Comes in Strong than Expected

US retail sales came in strong than expected as consumers accelerated their buying habits. US retail sales increased by 1.9% month over month. Expectations had been for retail sales to increase 0.7%, up from a 0.6% rise in August. Excluding autos, the gain amounted to 1.5%, which also was better than the 0.4% estimate.

About the Author

David Beckerauthor

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.