Gold Price Prediction for August 21, 2017

Gold prices surged higher breaking through trend line resistance but was unable to hold its gains, following news that Steve Bannon, the Presidents Chief Strategist, was asked to leave. Bannon helped generate volatility, and the hope amongst traders is there is a strategy change which will allow legislation to move forward. Support on the yellow metal is seen near the 10-day moving average at 1,278.  Resistance is seen near the Friday highs at 1,301. Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.

European Terror Buoys Gold

Gold printed nine-month highs of 1,301 with safe-haven demand driving prices higher. European terror attacks and political turmoil in the U.S. have been the drivers, seeing the dollar fall, and global equities trade lower, all supportive of gold prices. In addition, the Fed’s division over future rate hike will likely keep a bid under gold prices going forward.