Gold Price Prediction for November 15, 2018
Gold prices continued to rebound on Thursday, buoyed by a dip in the US dollar. Despite a stronger than expected US retail sales report, yields eased allowing the dollar to decline paving the way for higher gold prices. Inflation remains in check and came out on Wednesday in line with expectations according to date from the Labor Department.
Technical Analysis
Gold prices recaptured resistance which is now seen as short term support near the 50-day moving averaged at 1,210. The next level of target resistance is seen near the 20-day moving average near 1,222. Support below the 50-day moving average is seen near an upward sloping trend line that comes in near 1,200. Short term momentum is positive as the fast stochastic generated a crossover buy signal in oversold territory. The MACD (moving average convergence divergence) index is printing in the red with a declining trajectory which points to decelerating negative momentum. Prices are continuing to grind higher rebounding from the August lows. Prices continue to trade in a wide range which is capped near 1,360 and floored near the 1,160 level. With US yields easing this month gold prices could remain rangebound.
Retail Sales Climb More than Expected
The US Commerce Department reported that headline retail sales increased 0.8% in October more than expected, as households bought electronics and appliances. Data for September was revised down to show retail sales slipping 0.1% instead rising by 0.1% as previously reported. Expectations were for headline retail sales to increase by 0.5%. On a year over year basis, retail sales increased by 4.6% in October.
Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.3% according to the Commerce Department. Core retail sales correspond most closely with the consumer spending component of gross domestic product. Data for September was revised lower to show core retail sales rising 0.3% instead of gaining 0.5% as previously reported.
This article was originally posted on FX Empire
