Gold Price Prediction for January 9, 2017

Gold prices were nearly unchanged hovering in a tight range, despite a rally in the dollar, which came as the Euro drop on weak German manufacturing.  Prices remain above support near the October highs that coincide with the 10-day moving average at 1,305.  Target resistance is seen near the September highs at 1,352. Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the black, but the trajectory of the MACD is declining which reflects consolidation.

German Manufacturing Orders Drop

German manufacturing orders dropped -0.4% month over month, a lower than expected number – we had been looking for a decline of -0.3% month over month and consensus expectations were for an unchanged reading. October numbers were revised up to 0.7 5month over month from 0.5% month over month and the unadjusted annual rate improved to 8.7% year over year. The weakness over the months reflects a dip in export orders as well as lower than usual large ticket orders