Gold Price Prediction for August 23, 2017

Gold prices moved lower on Tuesday as the dollar gained traction following the softer than expected German ZEW Investor Confidence report.  The yellow metal generated an inside day with a lower highs and a higher low holding above support near the 10-day moving average at 1,283.  Resistance is seen near the August highs at 1.1910.  Momentum is neutral but positive momentum has decelerated as the MACD (moving average convergence divergence) index could generate a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which is pointing to lower prices.

German ZEW Was Weaker than Expected

German ZEW investor confidence was much weaker than expected, with the headline reading falling back to 10 from 17.5 in the previous month. Banks and automakers weighed on ZEW. The ZEW reading for the car sector dropped to -37.3 from -5.5, for banks the outlook dropped to -13.5 from -1.6, highlighting that the number of pessimists is far higher than those optimistic about the outlook.