Gold Price Prediction for December 8, 2016

Gold prices edged higher testing resistance near the 10-day moving average at 1,178.  U.S. yields were stable as stock prices surged, allowing gold to edge higher just above support near the December lows at 1,156.  With the dollar holding steady, gold prices have stopped accelerating lower.

The RSI (relative strength index) has moved slightly higher and above the oversold trigger level of 30, which reflects accelerating positive momentum. Gold prices were oversold for most of September to date.  Momentum appears to be moving higher as the MACD (moving average convergence divergence) index is poised to generate a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.