Gold prices moves higher as USD eases, and an Iranian-backed militia stormed the US Embassy in the Iraqi capital Tuesday.
US short term yields moved lower weighing on the interest rate differential, which put downward pressure on the Buck and paved the way for higher gold prices.
Technical Analysis: Gold prices moved higher pushing through the November highs at 1,516, now seen as near-term support.
Target resistance is seen near the late September highs at 1,535. Strong support is seen near the 10-Day MA at 1,495. Additional support is seen near the 50-Day MA at 1,479. The 10-Day MA recently crossed above the 50-Day MA which shows that a short term uptrend is now in place.
Short term momentum has slowed and now has a neutral trajectory after generating a buy signal and a sell signal. The fast stochastic is printing a reading of 95, well above the overbought trigger level of 80, which could auger a correction.
The RSI is now printing a reading of 75, rising from 73 which reflects accelerating positive momentum. The RSI is above the overbought trigger level of 70, and also points to a potential future correction. Medium-term momentum is positive as the MACD histogram prints in the Black with an upward sloping trajectory which points to higher prices.
Have a terrific New Year Holiday Week