Gold Price Predication for December 21, 2017

Gold prices moved higher as the EUR/USD gained traction, and is poised to test target resistance near a downward sloping trend line near 1,280. Support on the yellow metal is seen near the 10-day moving average at 1,253.  Momentum on gold prices has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).  A softer than expected mortgage market index eased the dollar paving the way for higher gold prices.

U.S. MBA mortgage market index sank

U.S. MBA mortgage market index sank 4.9% in data released earlier, accompanied by a 5.5% drop in the purchase index and a 3.2% decline in the refinancing index for the week ended December 15. These declines occurred despite a dip in the average 30-year mortgage rate to 4.16% after the final Yellen-Fed FOMC statement and hike was accompanied by two dovish dissents from Kashkari and Evans.