Gold Price Prediction for July 18, 2017

Gold prices moved higher on Monday continuing to break out as softer than expected U.S. retail sales and consumer prices, weighed on the U.S. dollar which paved the way for higher gold prices.  The yellow metal moved through a downward sloping trend line that coincides with the 10-day moving average at 1,222.  Resistance on the yellow metal is seen near the June 25, 1,257 highs.

Momentum Turns Positive

Momentum on gold prices has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal.  This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses above the 9-day exponential moving average of the spread. The index moved from negative to positive territory confirming the buy signal. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.