Gold prices fell and consolidated after rising late last week. The upward trend of the dollar has limited the rise in gold prices. US yields fell, but after the release of softer-than-expected retail sales and builder sentiment reports on Tuesday.
Gold prices fell on Wednesday after failing to break through resistance around the 20-day moving average at 1.778. Target support is seen near March lows at 1.677. The short-term momentum turned negative as the fast stochastic generated a crossover sell signal. Medium-term negative momentum turned into positive as the MACD (Moving Average Convergence Divergence) Index generated a buy cross. This buy signal occurs when the MACD line (12-day moving average minus the 26-day moving average) crosses the MACD signal line (9-day moving average MACD line).
Reduced refinancing due to higher rates
According to the Mortgage Bankers Association, home loan refinancing applications last week fell 5% from the previous week and 8% less than a year ago. Mortgage rates are slightly lower than they were in August last year, but not as low as last fall, when there was a mini-refinancing boom. Borrowers pulled out of the mortgage market last week as higher interest rates held back the recent refinancing revival. The average interest rate on a 30-year fixed-rate mortgage and related loan increased from 2.99% to 3.06%.
This article was originally listed on FX Empire
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