Gold prices finished the week on an up note, rising slightly and closing the week up 3.5%. This came as the dollar finally rebounded after making a lower low, and closing down for the week. Personal spending increased for a second consecutive month according to a report on Friday from the Commerce Department. This followed Thursday GDP report that showed the US economy declined nearly 33% for the Q2.
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Gold prices continued to rally, closing at an all-time. Prices rose by 3.5% for the week and finished on an up note. Support is seen near the prior highs at 1,921 and then the 10-day moving average near 1,911. Medium-term momentum has turned positive and continues to accelerate higher as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory points to higher prices. Short-term momentum has turned positive after recently turning negative. The fast-stochastic is printing a reading of 91 above the overbought trigger level of 80, which could foreshadow a correction. The RSI is printing a reading of 83, above the overbought trigger level of 70 which could foreshadow a correction.
Personal Spending Rose
Consumer spending, rose 5.6% last month after a record 8.5% jump in May as more businesses reopened. Expectations had been for consumer spending to rise by 5.5% in June. When adjusted for inflation, consumer spending increased 5.2% last month after surging 8.4% in May. Personal income dropped 1.1% last month after decreasing 4.4% in May. Wages increased 2.2% after rebounding 2.6% in May. The saving rate fell to a still-high 19% from 24.2% in May.