Gold Price Prediction for October 24, 2016

Gold prices bounced near support despite a rally in the dollar which generally leads to lower prices. Support is seen near the 10-day moving average at 1,259, while resistance is seen near the weekly highs at 1,274.

Momentum on gold prices has turned positive as the MACD (moving average convergence divergence) index generated a 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.  The index is printing in the black with and upward sloping trajectory which points to higher prices.  The RSI (relative strength index) has stabilized out of oversold territory, and is printing a reading of 38, which is on the lower end of the neutral range.