Gold Price Prediction for May 8, 2017
Gold prices attempted to move higher but hit resistance and was unable to gain further traction, easing lower into the close, following the stronger than expected U.S. Non-farm payroll report. Prices broke through and upward sloping trend line that was robust support generated from connecting the lows in December of 2016, to the lows in March and comes in near 1,240. Additional resistance on the yellow metal is seen near the 10-day moving average at 1,254. Target support on gold prices is seen near the March lows at 1,194.
Momentum on Gold is Negative
Momentum is negative as the MACD (moving average convergence divergence) index prints in the red with the MACD histogram moving lower reflecting a negative trajectory which points to lower prices for gold. The RSI consolidated just above the oversold trigger level of 30 and is printing a reading of 32, which is on the lower end of the neutral range.