Gold Price Prediction – Prices Consolidate With High Consumer Debt Report
Gold prices have consolidated, almost forming another doji day which is a sign of indecision. This movement of the yellow metal was accompanied by an unchanged reading on the greenback. US yields fell as US household debt rose to its highest amount in 14 years during the second quarter. According to a Federal Reserve report, this change came about thanks to a surge in the real estate market.
Gold prices moved sideways on Tuesday, moving sideways to the upper end of last week’s range. Support is near the 10 day moving average at 1,808. Resistance is seen near July highs at 1,834. Momentum is negative as the Rapid Stochastic has generated a cross sell signal. Positive mid-term momentum is slowing as the MACD (Moving Average Convergence Divergence) histogram prints in positive territory with a downward trajectory indicating consolidation.
Total debt has jumped
Strong gains in the housing market have led to an increase in US household debt. Total debt balances jumped $ 313 billion in the second quarter, the largest increase since the same period in 2007. As a share of debt, this represents an increase of 2.1%. Over the past four quarters, mortgage originations have totaled nearly $ 4.6 trillion, or 44% of all outstanding home loan balances.