Gold Price Prediction for October 25, 2016

Gold prices continue to consolidate with the yellow metal hovering near short term support at the 10-day moving average near 1,259.  Resistance is seen near last week’s highs at 1,275.  A stronger dollar and higher U.S. yields have been weighing on gold prices.  Monday’s better than expected U.S. Markit PMI Manufacturing index weighed on prices.

Momentum on the other hand has recently turned positive. 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 for the yellow metal.

Gold Fundamental Forecast