Gold Price Prediction for December 6, 2016
Gold prices hit a fresh 10-month low but closed well off session lows. The weakness in the dollar on Monday helped buoy the yellow metal. Resistance is seen near the 10-day moving average at 1,184. Support on gold prices is seen near the June lows at 1,076. Monday’s softer than expected EU services PMI was a drag on gold. Momentum remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.
The November Eurozone services PMI was revised lower, to 53.8 in the final reading, down on the provisionally estimated 54.1 reading. That’s still up on the 53.5 figure for October and is the best level in a year. Markit, the compiler of the survey, report that the PMI surveys for November are consistent with Q4 GDP growth of 0.4% quarter over quarter, up on Q3’s 0.3% quarter over quarter growth.
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