Gold Price Prediction for October 20, 2017

Gold prices rebounded on Thursday as the dollar eased, as risk aversion reentered the markets following a softer than expected Chinese GDP report.  Prices rebounded back to resistance near the 10-day moving average at 1,288.  Support on the yellow metal is seen near the October lows at 1,260.  Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a flattening trajectory which points to consolidation.

Chinese GDP Dips

The Chinese National Bureau of Statistics said its third-quarter GDP growth was 6.8% compared to the same period last year, a day after President Xi Jinping made big promises for the country’s economic future during a pivotal leadership meeting. Expectations had forecast China to post a modest drop from the second quarter, with GDP to have grown 6.9% percent in the July-September period due to the government’s efforts to cool the property market and cut debt risks.