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Gold Price Prediction for October 3, 2016

By:
David Becker

Gold prices traded on the defensive on Friday as traders moved out of safe haven assets. The rebound in German bank shares took the luster off of the

Gold Price Prediction for October 3, 2016

Gold prices traded on the defensive on Friday as traders moved out of safe haven assets. The rebound in German bank shares took the luster off of the yellow metal, which was unable to recapture resistance near the 10-day moving average at 1,326.  Support on gold prices is seen near the September lows at 1,306.

Momentum on gold prices has turned negative as the MACD (moving average convergence divergence) index generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The index moved from positive to negative territory, confirming the sell signal. The index is printing in the red with a downward sloping trajectory which points to lower prices.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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