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Gold Price Prediction – Prices Edge Higher as Brexit Deal is Reached

David Becker

Gold prices moved higher on Thursday but remained range bound making a higher high and a higher lower. US data continued did little to buoy US yields following a slightly stronger than expected jobless claims. The Euro and Sterling were buoyed by news that Boris Johnson has a Brexit deal with the EU-27, but still needs to get his own parliament to vote on the plan. The strength in the euro and pound weighed on the dollar paving the way for higher gold prices. Geopolitical risks remain, keeping the price of yellow metal buoyed.

 

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Technical Analysis

Gold prices moved higher on Thursday. Prices are testing resistance is seen near the 10-day moving average at 1,494, and then a downward sloping trend line that comes in near 1,512. Support is seen  an upward sloping trend line seen near 1,484. Short term momentum is positive as the fast stochastic generated a crossover buy signal. The fast stochastic is printing in the middle of the neutral range. Medium-term momentum is flat. The MACD histogram is printing in the red with a declining trajectory which points to accelerating negative momentum and lower prices.

Jobless Claims Remain Subdued

US jobless claims remain subdued rising slightly less than expected according to the US Labor Department. Jobless claims increased 4,000 to 214,000 for the week ended October 12 while the prior week was unrevised. Expectations were for claims to rise by 5,000 to 215,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out volatility, rose 1,000 to 214,750 last week.

This article was originally posted on FX Empire

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