Gold prices moved lower on Tuesday experiencing whipsaw price action. The dollar continued to rally as the move into the greenback seems to be a flight to safe-haven assets. Since gold prices are quoted in U.S. dollars, the rallying greenback is weighing on gold prices. The rally in the dollar comes despite mixed U.S. yields. A stronger than anticipated move-in Housing Starts and Building Permits failed to buoy the interest rate markets.
Technical analysis
Gold prices dropped moved sideways and now is squarely caught in a tight range. Support is seen near the 20-day moving average at 1,795. Resistance is seen near the 50-day moving average at 1,836. Short-term momentum has flip-flopped, turning negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is decelerating. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.
