Gold Price Prediction for October 27, 2016
Gold prices reversed Tuesday rise, and appear to have held support levels near the 10-day moving average near 1,263. Resistance on the yellow metal is seen near the weekly highs at 1,276. U.S. yields increased on Wednesday, taking the shine off the yellow metal.
Momentum has recently 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 MACD index moved from negative to positive territory confirming the buy signal. The index is now printing in the black with an upward sloping trajectory which is pointing to higher prices for gold. The RSI (relative strength index) has moved higher from oversold territory and is printing a reading of 41,which is on the lower end of the neutral range.
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