Gold Price Prediction for January 30, 2017

Gold prices rebounded from their lows following a softer than expected U.S. Durable goods order report.  The yellow metal made a lower low and a low high which is a sign of a down trend but formed a doji where the open and the close were the same reflecting indecision.  Resistance is seen near the 10-day moving average at 1,204.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

U.S. durable goods orders dropped 0.4 % in December, missing expectations for a sizeable bounce, from a revised 4.8% drop in November. Transportation orders declined 2.2% from -14.7%. Excluding transportation, orders were up 0.5% from 1.0% previously. Nondefense capital goods orders excluding aircraft rose 0.8% from 1.5%.