Gold Price Prediction – Prices Consolidate on Strong Consumer Debt Report
Gold prices consolidated, nearly forming another doji day which is a sign of indecision. This movement in the yellow metal was in tandem with an unchanged reading on the greenback. U.S. Yields moved lower as U.S. household debt rose by its highest dollar amount in 14 years during the second quarter. According to a report from the Federal Reserve, this change came thanks to a surge in the housing market.
Technical analysis
Gold prices moved sideways on Tuesday, moving sideways at the upper end of last week’s range. Support is seen near the 10-day moving average at 1,808. Resistance is seen near the July highs at 1,834. Momentum is negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a downward sloping trajectory which points to consolidation.
Total Debt Surged
Strong gains in the housing market led to a surge in U.S. Household debt. Total debt balances jumped $313 billion in Q2, the sharpest rise since the same period in 2007. As a share of debt, that represented a 2.1% increase. Over the past four quarters, mortgage originations have totaled close to $4.6 trillion, amounting to 44% of all outstanding home loan balances.
This article was originally posted on FX Empire
