Gold Price Prediction for August 22, 2017

Gold prices moved higher on Monday, and are testing support levels as the dollar loses traction.  A break of resistance near the 1,303 level would signal a break out of a 9-month range where there have been two other tops near this level. The softer than expected U.S. Chicago Fed National Manufacturing index put pressure on the greenback paving the way for higher gold prices. Support on the yellow metal is seen near the 10-day moving average at 1,281. 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.

Fed National Activity Dropped

The U.S. Chicago Fed National Activity index fell to -0.01 in July after bouncing to 0.16 in June from -0.30 in May. That dropped the 3-month average to -0.5 from June’s 0.09  and unchanged in May. Of the 85 indicators that make up the index, 42 made positive contributions. A negative reading indicates below trend growth.