Gold Price Prediction – Prices Rebound as Risk Appetite Improves

Gold prices moved higher rebounding as riskier assets gain traction. The U.S. Treasury yields moved lower ahead of Wednesday’s CPI report. The dollar also moved lower paving the way for higher gold prices. German’s January trade figures showed a weaker than expected export figures.

Trade gold with FXTM

Technical analysis

Gold prices moved higher on Tuesday rebounding from support and testing resistance seen near the 10-day moving average at 1,728. Support is seen near the June lows at 1,670.   Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The fast stochastic is printing a reading of 14, below the oversold trigger level of 20 which could foreshadow a correction.  Medium-term momentum has 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.

German Trade Figures Were in Line with Expectations

Germany’s January trade figures showed a surplus of 14.3 billion euros was mainly in line with expectations. The December figure surplus was revised to 15.2 billion euros from 14.8 billion.  Exports defied expectations of a decline and instead rose by 1.4% after a revised 0.4% increase at the end of 2020.  Imports slumped by 4.7%.