Gold Price Prediction for September 21, 2017

Gold prices edged higher and have retraced the recent breakout, moving back down to the 1,313 level, waiting for an impetus to drive prices.  Geopolitics does not seem to be pushing gold higher anymore, as the combination of North Korean missiles and terrorist attacks in London has failed to buoy the yellow metal. Support is seen near the August 30 lows at 1,300, while resistance on gold is seen near the 10-day moving average at 1,326.

Momentum on Gold is Negative

Momentum on the yellow metal has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 90-day moving average of the spread. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices for the yellow metal.