Gold Price Prediction for October 21, 2016

Gold prices edged lower on Thursday as the dollar gained traction following the ECB meeting.  Gold is priced in US dollars, so a stronger dollar usually leads to lower gold prices.  Support on the yellow metal is seen near the 10-day moving average at 1,258, while resistance is seen near the September lows at 1,304.

Momentum 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 an upward sloping trajectory which points to higher prices.