Gold prices moved lower testing support near an upward sloping trend line that comes in near 1,270. As riskier assets gained traction and stock prices hit fresh all-time highs the demand for precious metals faltered. A break of this level would lead to a test of the October lows at 1,260. Resistance on the yellow metal is seen near the 10-day moving average at 1,287.
Momentum Turns Negative
Momentum on the yellow metal has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.