Gold Price Prediction – Gold Slides on Dollar Strength – FX Empire

Gold prices continued to move lower on Monday as the dollar edged higher. The move into the greenback seems to be a flight to safe-haven assets. Since gold prices are quoted in U.S. dollars, the rallying greenback is weighing on gold prices. The rally in the dollar comes despite lower U.S. yields which dropped following a weaker than expected home builders index. Bonds are also benefiting from a flight to quality.



Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Technical analysis

Gold prices dropped again on Monday. Prices touch support is seen near the 20-day moving average at 1,794.  Resistance is seen near the 50-day moving average at 1,8367. Short-term momentum has flip-flopped, turning negative as the fast stochastic generated a crossover sell signal. The fast stochastic has dropped rom overbought territory reflects accelerating negative momentum. Medium-term momentum is decelerating. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.

gold 071921

Home Builders Confidence Slips

Higher construction costs are starting to eat away at Homebuilder confidence. A monthly sentiment index from the National Association of Home Builders dropped 1 point to 80 in July. The index stood at 72 in July 2020. The index hit a record high of 90 in November of last year. Of the index’s three components, current sales conditions fell 1 point to 86. Buyer traffic declined 6 points to 65, and sales expectations in the next six months rose 2 points to 81.