Gold Price Prediction for May 30, 2016

Gold prices moved lower as the dollar gained traction, despite very little new information on U.S. monetary policy.  Yellen did say that rates will likely move higher if the assessment of the FOMC’s outlook remains the same. She said that a rate hike would be appropriate in the coming months.  Yellen is confirming what many of her colleagues on the Fed have stated over the past week.

Support on the yellow metal is seen near the March lows at 1,206, while resistance is seen near the 10-day moving average at 1,245.  Momentum is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices on gold.  The RSI (relative strength index) which is a momentum oscillator, broke down to new lows which reflects accelerating negative momentum.  The currency print of 32, is just above the oversold trigger level of 30.