Gold Price Prediction for January 10, 2018

Gold prices continued to consolidate first testing support near the 10-day moving average at 1,309, and then bouncing back into the close.  Prices appear to be forming a bull flag pattern which is a pause that refreshes higher.  Robust chain store sales likely mean that shopping continued to buoy precious metal prices. Resistance is seen near the September highs at 1,352.  Positive momentum is decelerating as the MACD (moving average convergence divergence) historical prints in the black with a declining trajectory which points to consolidation.

Chain Store Sales Rose

U.S. chain store sales rose 2.0% to 117.5 in the January 6 week, after dropping 2.3% in the last week of December and 0.4% the week before that. However, compared to the same week last year, sales slipped only marginally to a 3.8% year over year clip, versus 3.9% year over year previously. Though the big weather hit impacted the East significantly, net sales remained solid. The report noted that cash going into gift cards declined to 20.8%, versus 25.0% in 2016, and was the lowest since the 2011 holiday season.