Gold Price Prediction for August 8, 2017

Gold prices traded in a very tight range on Monday after dropping on Friday following the stronger than expected U.S. payroll report.  Prices formed an inside day which is where the open and close are at the same level which is a sign of indecision.  Resistance on the yellow metal is seen near the 10-day moving average at 1,262. Target resistance is seen near the July highs at 1,274.  Support on gold prices is seen near the July lows at 1,204.

Momentum Has Turned Negative

Short term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 5-day exponential moving average minus the 13-day exponential moving average) crosses below the 6-day exponential moving average of the spread. The index moved from positive to negative territory confirming the sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.