Gold Price Prediction for May 23, 2017

Gold prices continue to remain rangebound after rebounding last week as volatility returned to the capital markets. While sentiment remains strong, which is reflected in robust levels for equities, trepidation has returned, following the firing of former FBI chief Comey and the anointment of a special counsel to investigate collusion between the Trump campaign and Russia.

Gold Prices are Rangebound

Gold prices are in the middle of a tightening range that is capped by a downward sloping trend line that comes in near 1,288 and floored by an upward sloping trend line at 1,230.  Short term support is seen near the 10-day moving average at 1,239.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices for the yellow metal.