Gold Price Prediction for March 8, 2017

Gold prices moved lower on Tuesday as the U.S. 10-year yield recaptured the 2.51% level, and is poised to move higher ahead of Friday’s payroll report.  What appears to be priced into the interest rate market is a hike, unless there is a disaster. What is not priced in is a number that is much larger than expected.  Expectations are for a 210K payroll and a 300k+ would see gold prices break through support.

Momentum on Gold is Negative

Resistance on the yellow metal is seen near the 10-day moving average at 1,239.  Support on gold is seen near the January 26 lows at 1,180. Momentum on gold prices are negative with the MACD (moving average convergence divergence) index recently generating a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The index is printing in the red with a downward sloping trajectory which points to lower prices for the yellow metal.