Gold Price Prediction – Prices Rise as the Dollar Turns Lower Following Mixed Housing Data
Gold prices moved higher on Tuesday, as the dollar headed south. US yields moved higher following a stronger than expected increase in US Single-Family Housing Starts. Nancy Pelosi the US House of Representatives Speaker that the White House and she were getting closer to a stimulus deal. Gold volatility has eased and is currently trading near the lowest levels seen since the pandemic started to spread in February just shy of 21%.
Trade gold with FXTM
Technical analysis
Gold prices moved higher and are poised to test resistance is seen near the 50-day moving average at 1,925. Short term support is seen near the 10-day moving average at 1,905. Short-term momentum has turned negative as the fast stochastic generated a crossover sell 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.
Housing Starts are Mixed
US housing starts increased by 1.9% to an annual rate of 1.415 million units in September. Data for August was revised down to a 1.388 million-unit pace. Expectations were for Housing Starts to increase to a rate of 1.457 million units in September. The most impressive part of the release was that US single-family homebuilding surged in September, rising 8.5% to a rate of 1.108 million units last month. But starts for the volatile multi-family housing segment fell 16.3% to a pace of 307,000 units.
This article was originally posted on FX Empire
