Gold Price Prediction for March 24, 2017

Gold prices were nearly unchanged closing where they opened following a stronger than expected homes sales report, which lifted U.S. yields.  Trader’s will take their cues following the House of Representatives vote on Healthcare. Resistance is seen near the 200-day moving average at 1,259.  Support is seen near the 10-day moving average at 1,225.  Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. The index is printing in the black with an upward sloping trajectory which points to higher prices for the yellow metal.

U.S. Home Sales Soared in February

U.S. new home sales rose 6.1% to 592k in February, better than expected, after January’s 5.3% bounce to 558k, more than unwinding the 7.5% plunge in December to 530k. This is the highest pace since July. There was a net 2-month revision of -4k. The months’ supply of homes fell to 5.4 from 5.6. The median sales price fell 3.9% on the month to $296,200 after dropping 6.6% to $308,200 in January.