Yahoo News Gold Price Prediction – Prices Rise Despite Rising Yields as the Greenback Falls
Gold prices moved higher on Wednesday, as the dollar tumbled and yields moved higher. The move in the greenback seemed surprising given the rally in US yields. Riskier assets were mixed. Gold volatility has eased and is currently hovering near the 21% level. Stronger than expected UK CPI helped buoy gold. September’s CPI increased to 0.7% year-over-year from 0.5% in August. Mortgage applications in the US fell which was not expected.
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Technical analysis
Gold prices moved higher and tested resistance is seen near the 50-day moving average at 1,925, but was not able to eclipse this level. Short term support is seen near the 10-day moving average at 1,908. Short-term momentum has whipsawed and turned positive after recently turning negative as the fast stochastic generated a crossover buy signal on the upper end of the neutral range. Medium-term momentum remains neutral to positive as the MACD histogram prints in the black with an upward sloping trajectory that points to a slow trend higher.
Mortgage Applications Fall
Total mortgage application volume to fall 0.6% last week compared with the previous week, according to the Mortgage Bankers Association’s index. Applications to purchase a home fell 2% for the week, the fourth straight week of declines. Purchase demand is down nearly 7% compared with four weeks ago. Volume, however, is still 26% higher than one year ago.
This article was originally posted on FX Empire
