Gold Price Prediction for September 1, 2017

Gold prices surged higher as the dollar lost ground paving the way for higher prices for the yellow metal. Prices surged higher closing at 10-months highs and poised to test target resistance near 1,337. Support is seen near the 10-day moving average at 1,284. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal.

Pending Home Sales Fell

U.S. pending home sales fell 0.8% to 109.1 in July after rising 1.3% to 110.0 in June. Sales have declined in five of the seven months so far in 2017. Regionally, sales fell in the South, the Midwest and the Northeast but edged up in the West. Compared to last July, sales slid to -0.5% year over year versus the 0.4% year over year gain in June. Lean inventories continue to be a headwind for sales, particularly in the West where annual sales are down -3.2% year over year.