Gold Price Prediction for November 27, 2017

Gold prices consolidated but were unable to break out despite a surge in the euro which weighed on the greenback. Generally a lower dollar, helps buoy the yellow metal.  This comes despite a stronger than expected IFO which helped buoy the Euro.  Support is seen near the 10-day moving average at 1,284. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the black with a flat trajectory which points to consolidation.

German IFO Jumped

German Ifo reading jumps to 117.5, the highest since at least 20 years, and more importantly perhaps, led by a jump in the current conditions indicator to 111.0 from 109.1, which more than compensated for the slight dip in the forward looking expectations reading. Following on the heel of the much stronger than expected PMI readings the number will add to pressure on Draghi to defend his decision to extend QE again and not commit to an end date for QE.