Gold Price Prediction for March 29, 2017

Gold prices moved lower on Tuesday after testing resistance near the 200-day moving average near 1,258, but was unable to recapture that level. A break of the 200-day moving average would lead to a test of the January highs at 1,263.  Support on the yellow metal is seen near the 10-day moving average at 1,239.  Additional support is seen near the March lows at 1,200.  Prices were buoyed early in the day, but started to decline as the greenback gain strength following the stronger than expected consumer confidence report which hit a fresh 16-year high.

Momentum Remains Positive

The RSI (relative strength index) also hit resistance levels and was unable to break above the 70-overbought trigger level.  Momentum remains positive as the MACD prints in the black with an upward sloping trajectory which points to higher prices. According to the conference Board, U.S. Consumer Confidence Index hit at 16-year high in March reaching a level of 125.