Gold Price Prediction for November 20, 2017

Gold prices moved higher on Friday, surging above resistance which is now support at the 50-day moving average at 1,288.  Resistance is seen near the October highs at 1,306. Additional support on gold is seen near the 10-day moving average at 1,281. Stronger than expected housing numbers in the U.S. failed to lift the dollar and allowed gold prices to move higher. Momentum has turned positive as the MACD (moving average convergence divergence) index recently 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.

Housing Starts Surged

U.S housing starts surged 13.7% to 1.290 million in October, more than erasing the 3.2% hurricane-related September drop to 1.135 million which was revised from 1.127 million. Building permits rose 5.9% to 1.297million from a revised 3.7% drop to 1.225 million which was 1.215 million.