Gold Price Prediction for September 11, 2017

Gold prices initially rose ahead of the weekend as North Korea is expected to test another missile.  The yellow metal pushed up to the 1,357 level, shy of resistance near the July 2016 highs at 1,377.  Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The dollar has been on the defensive which has helped gold prices gain traction. Since gold is priced in dollars, a weaker dollar generally buoys gold prices.

The RSI is Overbought

The RSI (relative strength index), which is a momentum oscillator that measures accelerating and decelerating, edged sideways reflecting stabilizing positive momentum. The only caveat with the recent climb in the price of the yellow metal is the RSI is printing a reading of 71, above the overbought trigger level of 70 which could foreshadow a correction.