Gold Price Prediction for December 7, 2016

Gold prices continued to edge lower on Tuesday as a stronger than expected German Factory Orders buoyed yields paving the way for lower gold prices. Support on the yellow metal is seen near the July 2015 lows at 1,080.  Resistance is seen near the 10-day moving average at 1,180.  Gold prices remain oversold as the RSI(relative strength index) which is a momentum oscillator that measures overbought and oversold levels is printing a reading of 26, which is below the oversold trigger level of 30 and could foreshadow a correction.

German construction PMI jumped to 53.9 in November from 52.9 in October, and together with the strong manufacturing orders number this morning and generally positive survey indicators, the data adds further confirmation to expectations for a renewed acceleration in overall growth in the last quarter of the year.

Gold Fundamental Forecast

Gold Technical Analysis