Gold Price Prediction – Gold Trends Lower Breaking Through 200-day Moving
Gold prices continued to trend lower on Monday after closing through the 200-day moving average on Friday for the first time since March. The decline comes as the dollar rebounded and US yields remained stable. It also appears that Bitcoin is stealing a lot of Gold alternative currency thunder. Bitcoin prices hit an all-time high above 19K on Monday and continue to gain.
Trade gold with FXTM
Gold prices continued to trend lower on Monday, following the yellow metals’ first close below the 200-day moving average in March. Support is seen near the July lows at 1,756. Resistance is seen near the 10-day moving average at 1,832. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 9, well below the oversold trigger level of 20, which could foreshadow a correction. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a declining trajectory which points to lower prices.
Chicago PMI Declines
The Institute of Supply Management reported on Monday that the Chicago Purchasing Manager’s Index fell to 58.2 in November from 61.1 in October. Values above 50.0 indicate expanding manufacturing activity. Among the main five indicators, New Orders and Production posted the only declines, while Supplier Deliveries saw the largest gain.