Gold Price Prediction for July 21, 2017

Gold prices moved higher but hit resistance near the 50-day moving average at 1,249.  Gold was buoyed by a rising Euro which surged following a perception of a hawkish tone from the ECB on Thursday. Draghi told the markets that the ECB would evaluate QE in the fall to determine if it is needed beyond the March termination date. This helped ease the dollar, which paved the way for higher gold prices.

Gold Momentum is Positive

Support on the yellow metal is seen near the 10-day moving average at 1,1227.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal.