Gold Price Prediction for October 26, 2016

Gold prices gained ground shooting above resistance levels near last week’s highs at 1,270, which is now seen as short term support. Additional support is seen near the 10-day moving average at 1,262.  Resistance is now seen near the September lows at 1,300.  Tuesday’s softer than expected consumer confidence numbers, reduced the value of the dollar and allowed the yellow metal some room to run.

Momentum has turned positive as the MACD (moving average convergence divergence) index recently 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.

Gold Fundamental Forecast