Gold Price Prediction for February 27, 2017

Gold prices broke out as sentiment in the U.S. and Germany started to slip, paving the way for higher gold prices.  The yellow metal pushed above resistance near a horizontal trend line near 1,244, which is now seen as support.  Resistance is seen near the November closing highs at 1,303.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover 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.

Michigan Sentiment Slipped

Michigan sentiment slipped to an upwardly-revised 96.3 which was 95.7, after an election-fueled surge to a 13-year high of 98.5 in January, versus a 2-year low of 87.2 in October. Michigan sentiment is back below the 98.1 previous cycle-high in January of 2015 that had marked the strongest reading since January of 2004. Sentiment marked a recession-low of 55.3 in November of 2008.