Gold Price Prediction for October 26, 2017

Gold prices initially moved lower on Wednesday as a stronger than expected U.S. New Home Sales report buoyed the dollar generating headwinds for gold prices. Prices rebounded forming a doji day which is an open and a close at the same level.  Resistance is seen near the 10-day moving average at 1,286, while support is seen near the October lows at 1,260. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

New Home Sales Surged

New home sales surged 18.9% to a seasonally adjusted annual rate of 667,000 units last month, according to the Commerce Department amid an increase in all four regions. That was the highest level since October 2007 and followed August’s upwardly revised sales pace of 561,000 units. The percent gain was the largest since January 1992. August’s sales pace was previously reported at 560,000 units.