Gold Price Prediction for May 3, 2017

Gold prices edged lower buy rebounded from the lows of the trading session.  A stronger greenback that made headway against the yen, paved the way for lower gold prices. Despite a risk on trade that continues to perpetuate in the equity markets, gold remains buoyed ahead of this week’s U.S. payroll report and the second round of the French elections this Sunday. Support on the yellow metal is seen near an upward sloping trend line that comes in near 1,241.  Resistance on gold is seen near the 10-day moving average at 1,269.

Momentum on Gold Remains Negative

Momentum is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices for the yellow metal.  The RSI (relative strength index) edged sideways, printing a reading of 45, which is in the middle of the neutral range and reflects consolidation.