Gold Price Prediction for September 28, 2016

Gold prices lost ground on Tuesday as broader dollar strength eroded the value of the yellow metal.  A stronger than expected Markit PMI Services report help buoy gold values. Prices slumped to support near the 10-day moving average near 1,325.  Resistance is seen near the September highs at 1,350.  Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory that points to higher prices.

The RSI (relative strength index) dropped back to the 49 handle which is in the middle of the neutral range and reflects consolidation. The U.S. Markit services PMI rose 0.9 points to 51.9 in the September flash print after slipping 0.4 points to 51.0 in August. It’s a 7th consecutive month of expansion, since hitting 49.7 in February.