Gold prices hit a 6-week high on Monday and is grinding toward resistance near the October highs at 1,306. A break of this level could lead to a test of the September highs at 1,349. Gold prices are trading sideways, as the strength in the dollar is capping the upside to price gains. The Euro has made some recent headway, but the strength of the dollar versus the yen has retained the value of the dollar against gold prices. Since gold is priced in dollars, a stronger dollar makes gold more expensive in other currencies.
Momentum is Neutral
Momentum is flat, as the MACD (moving average convergence divergence) histogram prints in the black with a slightly upward trajectory which points to consolidation. The RSI (relative strength index) is looking to test 6-week highs which reflects accelerating positive momentum.