GOLD PRICE PREDICTION – GOLD DROPS AND THEN POPS FOLLOWING TRUMP COMMENTS
Gold prices tumbled but closed off the lows of the session following news that Donald Trump said he hoped the Federal Reserve would not raise interest rates. Initially the yellow metal was on the defensive as stronger than expected jobless claims and a robust Philly Fed survey buoyed the greenback generating headwinds for gold prices. The trend remains downward with target support near the July 2017 lows at 1,204. Resistance on the yellow metal is seen near the 10-day moving average at 1,241. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices. The fast stochastic generated a crossover buy signal in oversold territory which points to a potential rebound. The RSI (relative strength index) is printing a reading of 25, below the oversold trigger level of 30 which could foreshadow a correction.
President Donald Trump said Thursday he hoped the Federal Reserve would curtail raising interest rates. The Fed is suppose to be an independent institution, and its very unusual that a President would comment on the Feds action. “I am not happy about it,” Mr. Trump said during an interview conducted Thursday by CNBC.