USD/CAD Exchange Rate Prediction – The Dollar Edge Higher Bearly

Key Insights

  • The dollar edged higher versus the Loonie.
  • Treasury yields moved lower.
  • The exchange rate settled just off the lows.

USD/CAD edged higher but traded in a tight range. The dollar was mostly lower against most major currencies as Treasury yields declined to pull the interest rate differential in favor of the Loonie. Fed Chair Powell was on the hill on Wednesday and will have a repeat performance Thursday.

Powell told Congress that he believes the economy is strong now, but he acknowledged a recession could happen. He added that achieving a “soft landing,” in which policy tightens without severe economic circumstances such as a recession, will be difficult. Powell insisted that inflation is running too hot and needs to come down.

Technical Analysis

The USD/CAD rebounded but close well off the highs of the day. Target resistance is seen near the June highs at 1.3076. Support is seen near the 10-day moving average of 1.2900. The 10-day moving average crossed above the 50-day moving average, which means that a short-term uptrend is now in place.

Short-term momentum has reversed and turned negative as the fast stochastic had a crossover sell signal. Prices have moved out of the oversold territory, reflecting negative momentum.

Medium-term momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a sliding trajectory that points to consolidation.

Silver Price Prediction – Silver Slides as Downtrend Perpetuates

Key Insights

  • Silver prices eased and continue to consolidate.
  • Treasury yields moved lower.
  • Gold prices moved higher but failed to buoy silver.

Silver prices moved lower, bucking the trend as most precious metals complex moved higher. U.S. Treasury yields declined sharply, despite a hawkish Fed Chair testimony on the hill on Wednesday. The dollar moved lower but failed to buoy silver prices.

A Federal Reserve Chairman, Jerome Powell, was on the hill for his two-day Humphrey Hawkins testimony, which is mandated by Congress. The Central bank chief said he is determined to bring down inflation and can make that happen. Though Powell said he believes the economy is strong now, he acknowledged a recession could happen.

Technical Analysis

Silver prices edged lower, sliding through support near the 10-day moving average of 21.58. Additional resistance is seen near the 50-day moving average at 22.44.

The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD as a long-term downtrend is now considered in place.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is the positive territory with an upward sloping trajectory that points to higher prices.

Natural Gas Price Prediction – Prices Rise Ahead of Inventory Forecast

Key Insights

  • Natural gas prices moved higher and settled well off the lows
  • Prices formed a Doji Day.
  • The weather is expected to be hotter than normal in the West and South.

On Wednesday, natural gas prices moved higher, forming a Doji Day, which is a sign of indecision. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal throughout most of the West South East next 6-10 and 8-14 days. No active tropical disturbances are expected to become cyclones in the next 48 hours.

Gas arriving at LNG terminals remained stable at approximately 2-bcf per day lower because of the fire in the Freeport LNG‘s natural gas liquefaction plant in South Texas on June 8, 2022. The fire has led to the full shutdown of the facility. According to facility officials, the plant is expected to close until the middle of September.

Less export should lead to slightly more available gas, which is why prices have already moved lower.

Technical Analysis

Natural gas prices formed a Doji day which is a sign of indecision. Support is seen near a horizontal trend line that comes in at 6.73.

Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic is printing a reading of 9, below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD (moving average convergence divergence) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram prints in negative territory with a falling trajectory which points to lower prices.

Gold Price Prediction – Prices Rise on Dollar Weakness

Key Insights

  • Gold prices rebounded but continue to consolidate.
  • Treasury yields moved lower.
  • Fed Chair Powell was on the hill for his semiannual testimony.

Gold prices moved higher but remained rangebound. The dollar eased slightly as treasury yields declined. The move in the bond market came despite a hawkish Fed testimony. Since gold prices are quoted in dollars, a weaker greenback generally leads to higher gold prices.

Fed Chair Powell was on the hill on Wednesday. His remarks are part of a congressionally mandated semiannual report on monetary policy. The comments are commonly known in markets as the Humphrey Hawkins report.

A Federal Reserve Chairman, Jerome Powell, told congressional lawmakers that the central bank is determined to bring down inflation and can make that happen.

Technical Analysis

Gold prices moved higher and remained below former support, which is now resistance near the 200-day moving average at 1,843. The yellow metal support is now near the June lows at 1,805. Until there is a clear trend in the greenback, gold prices are likely to continue to consolidate.

Short-term momentum has turned positive as the fast stochastic generated a crossover sell signal.

Medium-term momentum is flat. The  MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.

Silver Price Prediction – Prices Rise Despite a Dip in Gold

Key Insights

  • Silver prices traded in a tight range.
  • Gold prices also consolidated, capping the precious metals complex.
  • Treasury yields were nearly unchanged.

Silver prices traded sideways along with most of the precious metals complex. U.S. Treasury yields were capped following lower-than-expected existing home sales. Gold prices edged lower, capping the precious metals complex.

According to the National Association of Realtors, existing Home Sales declined in May, falling by 3.4% to an annualized rate of 5.41 million units. Sales were 8.6% lower than in May 2021. This is the weakest reading since June 2020. The drop in demand was likely a function of higher mortgage rates. During May, the average rate on the 30-year fixed mortgage rose from around 4% to 5.5%.

Technical Analysis

Silver prices edged higher but remained above support near the 10-day moving average of 21.64. Resistance is seen near the 50-day moving average at 22.52.

The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is the positive territory with an upward sloping trajectory that points to higher prices.

USD/CAD Exchange Rate Prediction – The Loonie Rise on Strong Retail Sales

Key Insights

  • The dollar eased against the Loonie.
  • Treasury yields slipped.
  • Canadian Retail Sales rose more than expected.

USD/CAD eased as the greenback failed near resistance. Stronger than expected Canadian Retail Sales and weaker than expected U.S. Existing Home Sales allowed the Loonie to gain traction. U.S. yields could have peaked with the market pricing in a 95% chance of a 75-basis point rate hike in July.

Statistics Canada reported that Canadian retail sales rose 0.9% to $60.7 billion in April, boosted by gains at general merchandise stores. Expectations were for a 0.8% rise. Core retail sales rose 1.0% compared to expectations they would rise by 0.6%. Sales at general merchandise stores gained 4.2%, while sales at miscellaneous store retailers rose 11.3%.

Technical Analysis

The USD/CAD slid. Target resistance is seen near the June highs at 1.3076. Support is seen near the 10-day moving average of 1.2865. The 10-day moving average crossed above the 50-day moving average, which means that a short-term uptrend is now in place.

Short-term momentum has reversed and turned negative as the fast stochastic had a crossover sell signal. Prices have moved out of the oversold territory, reflecting negative momentum.

Medium-term momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a sliding trajectory that points to consolidation.

Natural Gas Price Prediction – Prices Slide Forming Doji Day

Key Insights

  • Natural gas prices moved lower but settled off the lows.
  • Prices formed a Doji Day.
  • The weather is expected to be hotter than normal in the West and South.

On Tuesday, natural gas prices declined but finished off the session lows forming a Doji Day which is a sign of indecision. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal throughout most of the West South East next 6-10 and 8-14 days.

Gas arriving at LNG terminals have declined because of a fire at Freeport LNG‘s natural gas liquefaction plant in South Texas on June 8, 2022. The fire has led to the full shutdown of the facility. The shutdown of the Freeport LNG facility, located south of Houston on the Gulf Coast, will reduce total U.S. liquefied natural gas (LNG) export capacity by approximately 2 billion BCF per day.

Technical Analysis

Natural gas prices formed a Doji day which is a sign of indecision. Support is seen near a horizontal trend line that comes in at 6.73.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Prices are oversold as the fast stochastic is printing a reading of 9, below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD (moving average convergence divergence) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in negative territory with a falling trajectory which points to lower prices.

Gold Price Prediction – Prices Consolidate as the Dollar Trades Sideways

Key Insights

  • Gold prices continued to trade sideways.
  • The dollar was mixed, rallying against the yen but sliding versus the Euro.
  • Treasury yields were nearly unchanged despite weak housing data.

Gold prices continued to consolidate as the dollar traded mixed. The yield differential widened versus the yen allowing the greenback to gain traction versus the Japanese currency. Despite weaker than expected U.S. existing home sales, U.S. treasury yields remained stable. The CME Fed Watch shows a 95% chance of a 75-basis point Fed hike at the July Fed meeting.

According to the National Association of Realtors, existing Home Sales declined in May, falling by 3.4% to an annualized rate of 5.41 million units. Sales were 8.6% lower than in May 2021. This is the weakest reading since June 2020. The drop in demand was likely a function of higher mortgage rates. During May, the average rate on the 30-year fixed mortgage rose from around 4% to 5.5%.

Technical Analysis

Gold prices traded sideways and remained below former support, which is now resistance near the 200-day moving average at 1,843. The yellow metal support is now near the June lows at 1,805.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum is flat. The  MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.

Gold Price Prediction – Prices Consolidate Over Juneteenth

Key Insights

  • Gold prices consolidated during the Juneteenth Holiday.
  • The dollar eased as gold traded sideways.
  • The bond, stock, and commodity markets were closed

Gold prices traded sideways. The dollar eased, but the market had little direction as both the bond and commodity futures markets were closed due to the Juneteenth Holiday. The movement of the yellow metal will be based on the dollar, which might have peaked, given the massive amount of rate hikes already built into the interest rate futures market.

Gold is quoted in dollars, and the lack of movement in the greenback led to a directionless yellow metal. The most important news last week seemed to be central bank activity.

Despite rate hikes from the Swiss National Bank and the Bank of England, The Bank of Japan bought a huge amount of Japanese government bonds last week to defend its 0.25% cap on the 10-year. The move by the BOJ was a stimulus and added $81 billion of bonds to its balance sheet.

The Swiss National Bank hiked interest rates by 50 basis points, pushing the Franc up by 2% against the greenback.

Technical Analysis

Gold prices remained below former support, which is now resistance near the 200-day moving average at 1,842. The yellow metal support is now near the May lows at 1,786.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum is flat. The  MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.

USD/CAD Exchange Rate Prediction – The Dollar Surged on Higher Treasury Yields

Key Insights

  • The dollar rebounded sharply against the Loonie.
  • Treasury yields broke out.
  • Jobless claims were weaker than expected.

USD/CAD surged and rebounded, breaking through short-term resistance. The 2-year yield rose to help to generate tailwinds for the greenback. Stronger than expected headline and core CPI spooked market participants.

Consumer prices surged higher, rising to a 40-year high, rising 8.6% yearly, hotter than the 8.3% expected. This report shows that headline inflation remains strong due to energy, food prices, and shelter. Excluding volatile food and energy prices, core CPI was up 6%, slightly higher than the 5.9% estimate. Monthly, headline CPI was up 1% while core rose 0.6.

Technical Analysis

The USD/CAD rebounded sharply. Target resistance is seen near the May highs at 1.3070. Support is seen near the 200-day moving average near 1.2660. The 10-day moving average crossed below the 50-day moving average, which means that a short-term downtrend is now in place.

Short-term momentum has reversed and turned positive as the fast stochastic had a crossover buy signal.

Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

Silver Price Prediction – Prices Slide as The Dollar Surges

Key Insights

  • Silver prices moved lower.
  • The dollar rallied.
  • Treasury yields surged higher on robust CPI data.

Silver prices moved lower along with most of the precious metals complex. U.S. Treasury yields continued to rebound, despite a higher-than-expected increase in jobless claims. On Friday the Labor Department will release its CPI report. A much stronger than expected number will spook the market.

The Bureau of Labor Statistics reported on Friday that CPI rose 8.6% year-over-year strong than the 8.3% expected. Headline inflation remains strong due to energy and food prices. Excluding volatile food and energy prices, core CPI was up 6%, slightly higher than the 5.9% estimate. Monthly, headline CPI was up 1% while core rose 0.6.

Technical Analysis

Silver prices moved lower, slipping through support which is now resistance near the 10-day moving average of 21.92. Support is seen near the June lows at 21.43. Prices appear to be forming a head and shoulder pattern that could target the May lows.

The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative, which reflects consolidation.

Gold Price Prediction – Prices Slide on Strong CPI Data

Key Insights

  • Gold prices moved lower.
  • The dollar broke higher.
  • Treasury yields surged higher on strong CPI data.

Gold prices moved lower in early trade in the North American trading session. A Strong greenback and higher yields weighed on the yellow metal. Since gold is quoted in dollars, a stronger dollar generates headwinds for the yellow metal. The headline and core CPI came in stronger than expected pushing the 2-year yields to a 13-year high.

The Labor Department reported on Friday that CPI rose 8.6% yearly, hotter than the 8.3% expected. This report shows that consumer inflation has been the strongest since 1981. While headline inflation remains strong due to energy and food prices, shelter and services are starting to slow.

Excluding volatile food and energy prices, core CPI was up 6%, slightly higher than the 5.9% estimate. Monthly, headline CPI was up 1% while core rose 0.6.

Technical Analysis

Gold prices slide through support resistance near the 200-day moving average at 1,842. The yellow metal support is now near the May lows at 1,786. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum is flat. The  MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.

Natural Gas Price Prediction – Prices Slide Despite Warm Weather Forecast

 Key Insights

  • Natural gas prices whipsawed and moved lower.
  • The weather is expected to be warmer in the mid-West and South East.
  • Inventory ended May 15% below the 5-year average.

On Friday, natural gas prices moved lower as strong CPI buoyed the dollar, which temporarily weighed on prices. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal throughout most of the mid-West and South East next 6-10 and 8-14 days.

U.S. natural gas inventories ended May at 2.0 trillion cubic feet, which is 15% below the five-year average. We forecast that natural gas inventories will end the 2022 injection season at just over 3.3 Tcf, which would be 9% below the five-year average.

Technical Analysis

Natural gas prices whipsawed and moved lower. Support is seen near the 50-day moving average of 7.63.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum has turned negative as the MACD (moving average convergence divergence) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in negative territory with a falling trajectory which points to lower prices.

USD/CAD Exchange Rate Prediction – The Dollar Rallies as Treasury Yields Rise

Key Insights

  • The dollar rebounded sharply against the Loonie.
  • Treasury yields broke out.
  • Jobless claims were weaker than expected.

USD/CAD moved higher, rebounding and are poised to target resistance. The 2-year yield rose to help to generate tailwinds for the greenback. The currency markets are focusing on Friday’s U.S. CPI report following Thursday’s weaker than expected initial jobless claims report.

Jobless claims for the week ended June 4 totaled 229,000, an increase of 27,000 more than the 210,000 expected. Continuing claims, which run a week behind the headline number, were unchanged at just over 1.3 million, below estimates of 1.35 million. The four-week moving average for continuing claims declined slightly to 1.32 million, the lowest level since January 10, 1970.

Technical Analysis

The USD/CAD rebounded sharply. Target resistance is seen near the 50-day moving average near 1.2720. Support is seen near an upward sloping trend line near 1.26. The 10-day moving average crossed below the 50-day moving average, which means that a short-term downtrend is now in place.

Short-term momentum has reversed and turned positive as the fast stochastic had a crossover buy signal.

Medium-term momentum decelerated.  The trajectory of the MACD line is negative which points to consolidation.

Silver Price Prediction – Prices Slide as Yields Break Higher

Key Insights

  • Silver prices moved lower on Thursday.
  • Treasury yields appear to be breaking out.
  • Gold prices moved lower as the dollar rallied.

Silver prices moved lower along with most of the precious metals complex. U.S. Treasury yields continued to rebound, despite a higher than expected increase in jobless claims. On Friday the Labor Department will release its CPI report. A much stronger than expected number will spook the market.

Initial jobless claims totaled 229,000, an increase of 27,000 from the upwardly revised level, more than the 210,000 expected. The last time initial claims were that high was in January. 15. Continuing claims, were unchanged at just over 1.3 million, below estimates of 1.35 million. The four-week moving average for continuing claims declined slightly to 1.32 million, the lowest level since January 10, 1970.

Technical Analysis

Silver prices moved lower, slipping through support which is now resistance near the 10-day moving average of 21.98. Support is seen near the June lows at 21.43.

The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative which reflects consolidation.

Gold Price Prediction – Prices Consolidate Ahead of CPI and Fed

Key Insights

  • Gold prices edged lower on Thursday.
  • The dollar recaptured its upward trend.
  • Treasury yields rebounded across the curve.

Gold prices slipped on Thursday. A Strong greenback and higher yields capped gold price gains. Since gold is quoted in dollars, a stronger dollar generates headwinds for the yellow metal. CPI is expected to come in hot but how hot will determine the direction of gold prices.

 Jobless claims for the week ended June 4 totaled 229,000, an increase of 27,000 from the upwardly revised level, more than the 210,000 expected. The last time initial claims were that high was in January. 15. Continuing claims, which run a week behind the headline number, were unchanged at just over 1.3 million, below estimates of 1.35 million.

The four-week moving average for continuing claims declined slightly to 1.32 million, the lowest level since January 10, 1970.

Technical Analysis

Gold prices slipped near support near the 200-day moving average at 1,842. Resistance is seen near the 50-day moving average at 1,885.

Medium-term momentum is flat. The  MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.

Silver Price Prediction – Prices Whipsaw and Move Lower

Key Insights

  • Silver prices whipsawed and moved lower.
  • Treasury yields rebounded.
  • The dollar moved higher generating headwinds for silver prices.

Silver prices moved lower despite a rebound in gold prices. The dollar rose as consumer credit rose to a record high. U.S. Treasury yields continued to rebound, with the 2-year testing recent highs.

U.S. consumer credit rose in April, following a record jump in March, driven by the continued strength of American consumers. According to the Federal Reserve borrowing through credit increased by $38.1 billion from March after a downwardly revised $47.3 billion gain in the prior month. Higher prices are not incorporated into the credit figures. The median forecast called for a $35 billion advance. The figures aren’t adjusted for inflation.

Technical Analysis

Silver prices whipsawed and moved lower. Support is seen near the 10-day moving average of 22.09. Resistance is seen near the 50-day moving average at 23.08.

The 50-day moving average remains crossed under the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects a downward trend in price movement.

USD/CAD Exchange Rate Prediction – The Dollar Rebounds on Rising Yields

Key Insights

  • The dollar rebounded against the Loonie.
  • Treasury yields moved higher, buoying the greenback.
  • Canadian trade data showed a narrower than expected surplus.

USD/CAD moved higher, rebounding back through former support. The 2-year yield rose helping to generate tailwinds for the greenback.

Canada reported a narrower than anticipated trade surplus of C$1.5 billion, down from a revised C$2.3 billion. A 14.3% decline led the decline in the surplus in crude oil exports in volumes, which were primarily offset by natural gas exports.

Technical Analysis

The USD/CAD rebounded after declining earlier in the week. Target support is seen near an upward sloping trend line near 1.2450. There is strong resistance near the 200-day moving average at 1.2657. The 10-day moving average crossed below the 50-day moving average, which means that a short-term downtrend is now in place.

Short-term momentum has reversed and turned positive as the fast stochastic had a crossover buy signal. Prices are oversold. The fast stochastic is printing a reading of 10, below the oversold trigger level of 20.

Medium-term momentum turns negative as the MACD line might generate a crossover sell signal.

This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day M.A. of the MACD line). The trajectory of the MACD is in positive territory, which reflects an upward trend in price movement.

 

Natural Gas Price Prediction – Prices Whipsaw Ahead of Inventory Report

Key Insights

  • Natural gas prices whipsawed and moved lower.
  • The weather is expected to be warmer than normal in the South.
  • Expectations are for 84 Bcf build in stockpiles.

On Wednesday, natural gas prices whipsawed, initially moving higher and then diving lower ahead of Thursday’s inventory report from the Department of Energy. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal throughout most of the United States next 6-10 and 8-14 days.

On Thursday, the Energy Information Administration is scheduled to release its inventory report. According to survey provider Estimize, expectations are for an 84 Bcf draw in stockpiles. Natural gas imports to LNG facilities were above 13 Bcf for 4 of the last 5-days.

Technical Analysis

Natural gas prices whipsawed, moving higher and then diving lower and closing near the lows of the session. Support is seen near the 50-day moving average of 7.50

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum has turned negative as the MACD (moving average convergence divergence) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in negative territory with a falling trajectory which points to lower prices.

 

Gold Price Prediction – Prices Edge Higher Despite Dollar Gains

Key Insights

  • Gold prices edged higher on Tuesday.
  • The dollar recaptured its upward trend.
  • Treasury yields rebounded across the curve.

Gold prices rebounded slightly on Tuesday, forming a doji day. A Strong greenback and higher yields capped gold price gains. Since gold is quoted in dollars, a stronger dollar generates headwinds for the yellow metal.

U.S. consumer borrowing surged again in April, following a record jump in March, driven by the continued strength of American consumers. According to the Federal Reserve borrowing through credit increased by $38.1 billion from March after a downwardly revised $47.3 billion gain in the prior month. Higher prices are not incorporated into the credit figures. The median forecast called for a $35 billion advance. The figures aren’t adjusted for inflation.

Technical Analysis

Gold prices rebounded from support near the 200-day moving average at 1,841. Short-term support is seen near the 10-day moving average of 1851. Resistance is seen near the 50-day moving average at 1,887.

Medium-term momentum turns positive as the MACD generates a crossover buy signal. This occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line.

The  MACD (moving average convergence divergence) histogram has a positive trajectory pointing to higher prices.