Gold Price Prediction for June 7, 2017

Gold prices broke out ahead of a trifecta of catalyst that could drive volatility, hitting a fresh 6-month high. The ECB will meet this week to determine monetary policy, and potentially alter their forward guidance. The UK will hold general election and May’s lead in the polls has narrowed, which could generate volatility.  Lastly, Ex-FBI chief Comey will testify in front of congress.

Gold Price Broke Out

Prices broke out above trend line resistance that connects the highs in November to the highs in April and comes in near 1,282.  This is now short-term support, and below that level is the 10-day moving average at 1,269.  Resistance is seen near the today’s highs at 1,296. Momentum remains positive as the MACD histogram prints in the black with an upward sloping trajectory which points to higher prices for the yellow metal. The RSI broke out as well reflecting accelerating positive momentum. Resistance is seen near the 74 level, where the current print is 67.