Gold Price Prediction – Prices Form Doji Day Rejecting Lower Levels

Gold prices rebounded on Monday, forming a doji day and rejecting trend line support following Friday’s decline. This comes as the U.S. 10-year yield moved higher and the dollar rose, generating headwinds for the yellow metal. The House of Representatives is moving forward with a second impeachment of Donald Trump. Trump stewed over the weekend as Twitter and Facebook removed his accounts.

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Technical analysis

Gold prices rebounded, forming a doji day, which is a consolidating where the open and close are at the same level, which is a sign of indecision. Resistance, which is former support, is seen near the 50-day moving average near 1,868. Support is seen near an upward sloping trend line that comes in near 1,815.  The 10-day moving average crossed above the 50-day moving average, which means a medium-term uptrend is now in place.  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) line generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

House Democrats Introduce Articles of Impeachment

Democrats in the House of Representatives introduced an article of impeachment against President Trump, accusing him of inciting an insurrection. The House will vote Tuesday on a measure calling for Vice President Pence to use the 25th amendment to remove Trump from office within 24 hours before beginning impeachment proceedings.