Gold Price Prediction for March 27, 2017

Gold prices moved higher as the Euro gained traction and the dollar edged lower following stronger than expected German PMI Data.  The yellow metal is poised to test target resistance near the 200-day moving average at 1,259.  Additional resistance is seen near the February highs at 1,263.  Support is seen near the 10-day moving average at 1,229.  Momentum is positive as the MACD (moving average convergence divergence) index prints in the black, with an upward sloping trajectory, after recently generating a crossover buy signal, which now points to higher prices.

German PMI Was Stronger than Expected

German PMI readings also surprise on the upside. The German PMI readings came in much better than anticipated with the manufacturing number rising to 58.3 from 56.6 and the services reading jumping to 55.6 from 54.4. So, despite the weak national business confidence readings and despite disappointing orders and production numbers recently, the PMIs continue to race ahead.