Gold Price Prediction for November 2, 2016

Gold prices surged higher as the dollar came under pressure, pushing the yellow metal higher toward resistance near the September lows at 1,320.  Support on gold prices is seen near the 10-day moving average at 1,271.  The yield differential has moved against the dollar, allowing gold prices to gain a foothold.  The RSI (relative strength index) moved higher with price action breaking through resistance levels reflecting accelerating positive momentum.

Momentum has turned positive as the MACD (moving average convergence divergence) index generated a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal. The index is printing in the red with an upward sloping trajectory which points to a higher exchange rate.

Gold Fundamental Forecast

Gold Technical Analysis Forecast