Gold Price Prediction for November 6, 2017

Gold prices moved lower on Friday as the dollar gained traction following stronger than expected services data reported by ISM. Prices were rejected near resistance at the 10-day moving average at 1,274, with support seen near the October lows at 1,260.  Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero level with a flat trajectory which reflects consolidation.

U.S. ISM Services Moved Higher

U.S. ISM services index edged up 0.3 ticks to 60.1 in October, beating estimates for a small decline, and follows the 4.5 point jump to 59.8 in September. It was 54.6 a year ago. This is the highest reading going back to August 2005 and is only the 4th time this index has been above 60 going back to late 1997. The employment component rose to 57.5 from 56.8. New orders dipped to 62.8 from 63.0. New export orders climbed to 60.0 from 56.0. Prices paid fell to 62.7 from 66.3.