Gold prices continued to consolidate on Wednesday after hitting
resistance. The dollar gained traction as the 10-year yield retraced
some of its recent gains. U.S. CPI rose in line with expectations,
according to the Labor Department. The House of Representatives moved
forward with a vote on the second impeachment of President Donald
Trump.To get more news about
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Gold prices moved sideways, consolidating, unable to gain headway, and
running into resistance near the 50-day moving average near 1,867.
Support is seen near an upward sloping trend line that comes in near
1,815. Short-term momentum has turned negative as the fast stochastic
continues to accelerate lower. 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.
U.S. consumer prices rose in December, driven by gains in gasoline,
though underlying inflation remained tame. According to the Labor
Department, its consumer price index increased 0.4% last month after
gaining 0.2% in November. On a year over year basis, the CPI advanced
1.4% after rising 1.2% in November. Both the month over month and year
over year reports were in line with expectations. Excluding the volatile
food and energy components, the CPI edged up 0.1% after climbing 0.2%
in November.
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