Gold Price Prediction for January 20, 2017

Gold prices dropped to support levels as the dollar gained traction following a stronger than expected Philly Fed number.  Support is seen near the 10-day moving average at 1,195, while resistance on the yellow metal is seen near the January highs at 1,219. Momentum has dipped as the RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum. On a weekly basis support is seen near the 10-week moving average near 1,171.

U.S. Philly Fed manufacturing index rose 3.9 points to 23.6 in January, much better than expected, after climbing 11.0 points to 19.7 in December. The employment component climbed to 12.8 after improving to 6.4 in December, while the workweek dipped to 6.8 from 7.1 which was revised from 9.8. New orders almost doubled to 26.0 from 14.9.