Gold Price Prediction for February 23, 2017

Gold prices whipsawed following the FOMC meeting minutes which shows that the Fed sees a rate hike coming relatively soon.  Prices of the yellow metal hovered near the 10-day moving average, but were able to recapture these levels near the end of the session.  Momentum has slowed to a halt, which is reflected by the MACD (moving average convergence divergence) index which is printing near the zero index level with a flat trajectory which reflects consolidation. Resistance is seen near the February highs at 1,244.  Support is seen near the February 14 lows at 1,216.

The Fed Sees a Rate Hike Coming Soon

A few Fed officials thought that a hike at an upcoming meeting would give the Committee flexibility. Several judged the risk of a “sizable undershooting of the longer run normal unemployment rate was high” and if that were the case a more aggressive stance might be needed. But, inflation was still running short of the Fed’s goal, a few saw downside risks.