Gold Price Prediction for August 31, 2016

Gold prices dropped and are poised to test support levels as the dollar gain traction following additional comments from the Fed VC Fischer who said that a one and done scenario would not necessarily play out. The Fed count tighten rates twice in 2016 which could further erode the value of the yellow metal as it buoys the greenback.

Momentum on gold prices remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices for gold. The RSI moved lower with price action reflecting accelerating negative momentum, breaking through support and poised to test the May lows which would generally signal a breakdown in gold prices.  Resistance on gold is seen near the 10-day moving average at 1,328, while short term support is seen near the July lows at 1,310.