Gold Price Prediction for March 22, 2017

Gold prices rallied as much as $10.00 per ounce to over $1,245.00, a three-week high, as safe-haven flows provide support given the backdrop of soggy equities, and lower yields. The contract is back within sight of the 200-day moving average, at $1,259.00, with a downward sloping trend line as resistance near 1,257. Recall, in late February, the contract briefly traded over the 200-day moving average, before falling better than $60 per ounce to $1,196 lows.  Support on the yellow metal is seen near the 10-day moving average at 1,216.

Gold Traders Await Yellen

Prices could continue to rise ahead of Yellen’s scheduled speech on Thursday which could push yields higher as she walks back some of the dovish comments making the rounds since the FOMC meeting last Wednesday. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.