Gold prices continued to decline on Monday but bounced off trend line support and settled off the session lows. The dollar moved sideways after rising on Friday. The 10-year Treasury yield rebounded and closed near the 1.50% level. Both Paul Tudor Jones and Bank of America CEO Brian Monihan were on the tape today, saying the Fed might consider reducing bond purchases as spending is surging and inflation is accelerating.
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Gold prices moved lower but settled off session lows. Support is seen near an upward sloping trend line that comes in near 1,852. Short-term resistance is seen near the most recent trend breakdown at 1,872. Additional resistance is seen near the 10-day moving average at 1,889 Short-term momentum continues to whipsaw and turned negaitve as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in negative territory with a flat trajectory which points to consolidation. American consumers are spending more freely as the economy opens up further, Bank of America CEO Brian Moynihan said Monday.
Spending is Surging
According to Bank of American CEO Moynihan, transaction volumes on credit and debit cards have grown by 20% so far in 2021 year over year. The comparison excludes 2020, an abnormal year in many respects, because the onset of the pandemic led to a decline in spending as the lockdown ensued.