Gold Price Prediction – Prices Rise as the Dollar Drops

 

Gold prices moved higher on Tuesday, bouncing from support and poised to test higher levels. This comes as the dollar moved lower helping to buoy the yellow metal. Yields moved lower which also helped buoy the yellow metal. The IMF also believes that world growth will continue to accelerate at a greater rate than expected in 2021.

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Technical analysis

Gold prices higher on Tuesday rebounded from support near the near the 10-day moving average at 1,722. Additional support is seen near the June lows at 1,670. Resistance is seen near the 50-day moving average at 1,767. 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. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

The IMF See Great Growth in 2021

The IMF expects the world economy to grow 6% this year, the most since 1980, when it started tracking data on a comparable set of countries. That is an upgrade from a projection for 5.5% growth the IMF made in January. The U.S. and China, the world’s biggest economies, are driving the recovery. The U.S. economy is projected to expand 6.4% this year and regain its pre-pandemic size after an estimated contraction of 3.5% last year. The IMF earlier projected 5.1% growth in 2021. China’s economy is projected to expand 8.4% this year, up from an earlier forecast of 8.1%.