Gold Price Prediction for September 18, 2017

Gold prices were unable to hold on to Thursday’s gains and whipsawed back to the lows seen on Wednesday.  Prices are consolidating and the markets now seem to take missile tests in stride.  Support on the yellow metal is seen near the weekly lows at 1,315.  Resistance is seen near the 10-day moving average at 1,333.

Momentum Has Turned Negative

Momentum on gold prices is negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses below the 9-day moving average of the spread. The MACD histogram moved from positive to negative territory which confirms the sell signal. The MACD histogram is also printing in the red with a downward sloping trajectory which points to lower prices for the yellow metal. The RSI (relative strength index) broke through support levels which reflects accelerating negative momentum.