Gold Price Prediction for September 25, 2017

Gold prices rebounded on Friday, bouncing off support near the 50-day moving average at 1,289. Saber rattling between North Korea and the U.S. buoyed gold. Resistance on the yellow metal is seen near the 10-day moving average at 1,314.  Momentum remains negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices.

North Korea and the U.S. Continue Their Rhetoric

Prices seemed unaffected by the rhetoric going back and forth between the U.S. and North Korea. Pyongyang has threated to detonate an Hydrogen-bomb in the Pacific. North Korea’s foreign minister, Ri Yong-ho, speaking from New York where he is due to address the UN assembly at the weekend, said that “it could be the most powerful detonation of an H-bomb in the Pacific,” adding that “we have no idea about what actions could be taken as it will be ordered by leader Kim Jong-un.” Kim Jong-un earlier said that Trump would “pay dearly” for threatening to destroy his regime, saying he would retaliate at the “highest level.”