Gold Price Prediction for November 21, 2017

Gold prices reversed course as the dollar gained traction following the decline in the Euro as German was unable to form a coalition. Prices reversed course making a lower low, and slicing through short term support near the 50-day moving average at 1,287.  Support is seen near the 10-day moving average at 1,280.  Momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the black with a flat trajectory which reflects consolidation.

New Elections have not Been Ruled Out

New elections have so far been ruled out in Germany following the collapse of coalition talks on Sunday, which for one thing has dashed hopes for pending fiscal stimulus. The breakdown of the negotiation was a surprise, especially as it was caused by the FDP party walking away, which is Merkel’s preferred coalition partner. Immigration policy was sticking point, with fundamental differences emerging with the Green party.