Gold Price Prediction for February 17, 2017

Gold prices moved higher as U.S. yields moved lower despite a stronger than expected Philly Fed manufacturing report.  Prices are forming a bull flag pattern, which is a pause that refreshes.  Support is seen near the 10-day moving average at 1,231.  Resistance is seen near the February highs at 1,244.  Momentum is neutral as the MACD (moving average convergence divergence) index prints near the zero index level with a flat trajectory which reflects consolidation.

The Philadelphia Fed index surged to a reading of 43.3 from 23.6 in January, which is a 33-year high.   Expectations were for an increase to a reading of 20. The new-orders index rose 12 points to 38, and the shipments index rose 8.1 points to 28.6.