Gold Price Prediction for September 12, 2016

Gold prices moved lower for a third straight trading session, falling to support near the 10-day moving average at 1,327.  Resistance on the yellow metal is seen near the September highs at 1,352.  Broader strength in the dollar put pressure on gold prices, as the dollar gained traction following a speech from the Fed’s Rosengren which focuses on a September rate hike.  Since gold is priced in dollars, gains for the greenback usually generate headwinds for gold prices.

Momentum is neutral as the MACD (moving average convergence divergence) index generated a sell signal just 2-days following a buy signal.  The trajectory of the MACD is flat, which reflects consolidation. The relative strength index (RSI) confirms this consolidative tone, printing a reading of 49, which is in the middle of the neutral range and also reflects a calm tone.