Gold Price Prediction for November 22, 2016

Gold prices consolidated on Monday, hovering near support just above the May lows at 1,199. Resistance on the yellow metal is seen near the 10-day moving average at 1,234.  The consolidation came as the dollar took a break from its robust rally, and the Bundesbank stated that additional stimulus was not needed.  The relative strength index (RSI) continued to form a bottom, reflecting decelerating negative momentum, as it prints at 28, below the oversold trigger level of 30 which could foreshadow a correction.

The Bundesbank has chimed in and doesn’t see need for more action. The German central bank in its latest monthly bulletin sounded quite upbeat saying that confidence improved markedly and that underlying cyclical momentum is quite strong, with Q4 GDP growth set to pick up considerably from the slightly weaker than expected third quarter.

Gold Fundamental Forecast

Gold Technical analysis Forecast