Gold prices moved lower on Monday as risk aversion abated. Hurricane Irma caused destruction throughout Florida but the damage was not as bad as expected. In addition, traders were expecting another test missile by North Korea this weekend, which help buoy gold and weighed on riskier assets. The lack of action, saw prices of the yellow metal slide.
Gold Prices Slid
Support on gold prices is seen near the 10-day moving average at 1,329. Resistance is seen near last week’s highs at 1,357. A break of this level would lead to a test of the July 2016 high at 1,377. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the black but the MACD histogram is printing in the red with a downward sloping trajectory which points to consolidation.