Gold Price Prediction for January 18, 2018

Gold prices whipsawed on Wednesday initially moving lower as the dollar gain traction, but climbing back to nearly unchanged following a surge in U.S. industrial production.  Prices appear to be forming a bull flag pattern that is a pause that refreshes higher.  Support on the yellow metal is seen near the 10-day moving average at 1,326.  Target resistance is seen near the September highs at 1,352. Momentum is positive, but not accelerating as the MACD (moving average convergence divergence) prints in the black with a flat trajectory which points to consolidation.

U.S. Industrial Production Grew More than Expected

The Federal Reserve reported that U.S. industrial production surged 0.9% last month also buoyed by robust gains in mining production after a downwardly revised 0.1 percent decline in November. Expectations were for a 0.4% increase. Industrial production rose at an annual rate of 8.2% in the fourth quarter, the biggest gain since the second quarter of 2010. For all of 2017, industrial output rose 1.8%, the first and largest increase since 2014.