Gold Price Prediction – Prices Consolidate Follow In Line CPI

Posted by freemexy on January 16th, 2021

Gold prices continued to consolidate on Wednesday after hitting resistance. The dollar gained traction as the 10-year yield retraced some of its recent gains. U.S. CPI rose in line with expectations, according to the Labor Department. The House of Representatives moved forward with a vote on the second impeachment of President Donald Trump.To get more news about WikiFX, you can visit wikifx official website.
　　Gold prices moved sideways, consolidating, unable to gain headway, and running into resistance near the 50-day moving average near 1,867. Support is seen near an upward sloping trend line that comes in near 1,815. Short-term momentum has turned negative as the fast stochastic continues to accelerate lower. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) line generated a crossover sell 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 the red with a downward sloping trajectory, which points to lower prices.
　　U.S. consumer prices rose in December, driven by gains in gasoline, though underlying inflation remained tame. According to the Labor Department, its consumer price index increased 0.4% last month after gaining 0.2% in November. On a year over year basis, the CPI advanced 1.4% after rising 1.2% in November. Both the month over month and year over year reports were in line with expectations. Excluding the volatile food and energy components, the CPI edged up 0.1% after climbing 0.2% in November.