Gold Prediction for September 29, 2016

Gold prices continued to trade on the defensive on Wednesday piercing through support near the 10-day moving average at 1,325. Broader dollar strength came on the heels of a stronger than expected Durable goods orders release.  Support is now seen near the August lows at 1,300.  Momentum should turn negative as the MACD (moving average convergence divergence) index is poised to generate a sell signal.  The RSI (relative strength index) is printing a reading of 46, which is in the middle of the neutral range and reflects consolidation.

U.S. durable goods orders were unchanged in August from a revised 3.6% bounce in July. June orders were bumped down to -4.3% from -4.2%. Transportation orders edged up 0.6% from after the 8.9% gain previously. Excluding transportation, orders slipped 0.4% from the prior 1.1%. Nondefense capital goods orders excluding aircraft rose 0.6% from 0.8%.