Gold Price Prediction for September 30, 2016

Gold prices initially moved lower following the stronger than expected U.S. GDP report, but rebounded during the North American afternoon as renewed concerns over Deutsche Bank appears.  U.S. equities moved south, buoying the price of the yellow metal. Resistance is seen near the 10-day moving average at 1,325, while support is seen near the September lows at 1,306.  Momentum is neutral as the MACD (moving average convergence divergence) index prints in the black with a flat trajectory that points to consolidation.

U.S. revised Q2 GDP growth up to 1.4%, fractionally shy of expectations, versus the prior 1.1% pace and 1.2% in the Advance report. GDP posted growth rates of 0.8% and 0.9% in Q1 and Q4 2015, respectively. For Q2, consumption was nudged down to 4.3% from 4.4% in the second report.