Gold Price Prediction – Prices Edge Higher as US Yields Fall

Gold prices moved higher but the price action continued to form a sideways range.  The dollar moved lower along with US treasury yields which appear to have broken down below support near the 50-day moving average. A stronger than expected durable goods orders failed to lift yields which weighed on the greenback and paved the way for higher gold prices.

Trade gold with FXTM

Technical analysis

Gold prices moved higher but continue to enjoy a consolidative tone. Gold prices edged above resistance near the 10-day moving average at 1,906, which is now seen as support. Additional support is seen near the October lows at 1,872. Resistance is seen near the 50-day moving average at 1,919. Short-term momentum has whipsawed turning 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 a declining trajectory that points to consolidation.

Durable Goods Order Rise More than Expected

Durable goods orders increased by 1.9% in September after rising 0.4% in August. Durable goods orders were driven by a 4.1% rebound in orders for transportation equipment, which followed a 0.9% decline in August. Orders for motor vehicles and parts recovered 1.5% after falling 4.1% in August. Orders for non-defense capital goods excluding aircraft, increased 1.0% last month. Data for August was revised higher to show these so-called core capital goods orders increasing 2.1% instead of 1.9% as previously estimated. Expectations were for core capital goods orders to increase by 0.5%.