Gold Price Prediction for May 24, 2015

Gold prices edged lower for a 4^th consecutive trading session, but closing off of its lows.  Prices appear to have bounced near Thursday’s lows at 1,243.  Resistance on the yellow metal is seen near the 10-day moving average at 1,265.  Additional support on gold is seen near the April lows at 1,206.  Momentum is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.

The RSI (relative strength index) which is a momentum oscillator that also measures overbought and oversold levels, broke down through support levels below 49, which now reflects accelerating negative momentum, which also points to lower prices for the yellow metal. Prices will likely consolidate until Friday when Janet Yellen speaks and traders get a better gauge of were interest rates will be in the near future.