Gold Price Prediction for August 30, 2016

Gold prices steadied during the European trading session, after falling sharply on Friday. Heightened Fed rate hike prospects, along with dollar strength has kept pressure on the contract, which ranged between 1,318.0, and 1,324.95. The July 12 low of 1,312.80 provides the next support level, while the 10-day moving average at 1,336,00 is first major resistance.

VC Stanley Fischer on Friday stated that the Fed was data dependent and this Friday’s payroll report would help paint a picture for the committee.  Momentum on the yellow metal remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices for the yellow metal.  There are a number of data points which will help generate volatility before Friday including the U.S. ISM Manufacturing report and the ADP private payroll report.