Gold Price Analysis: MACD offers bearish signal for first since November
A gold price indicator is offering a bearish signal for the first time in nearly two months. The MACD histogram, an indicator used to identify trend changes and gauge trend strength, has crossed below zero, confirming a bearish reversal. The indicator was last seen printing negative values on Nov. 28.
While the MACD has turned bearish, the candlestick arrangement on the daily chart is indicating the price pullback from six-year highs above $1,600 may be over.
Gold: On the back foot below 10-day SMA amid broad USD strength, risk-on
Gold prices seesaw near $1,552 during Friday’s early Asian session. The yellow metal dropped the previous day, closed below 10-day SMA, after the US dollar’s (USD) broad gains and market’s rush to riskier assets on the back of improved trade sentiment. Even so, the US Atlanta Fed’s GDPNow anticipated a slower growth figure in the fourth quarter.
As per the latest data from the Federal Reserve (Fed) Bank of Atlanta, mostly known as Atlanta Fed, “the GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2019 is 1.8 percent on January 16, down from 2.3 percent on January 10.”
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