Gold Price Prediction for September 26, 2017

Gold prices surged higher following comments from North Korea that stated that the rhetoric from the United States is considered an ack of war.  While this was taken literally, gold prices did receive a pop, despite an untick in the dollar in the wake of the German elections.

Negative Momentum Decelerates

Gold prices bounced near support at the 50-day moving average at 1,290, and rebounded up to resistance near the 10-day moving average at 1,312. Prices rebounded after testing the 38.2% Fibonacci retracement level. Negative momentum has started to decelerate as the MACD (moving average convergence divergence) index is printing in the red but the trajectory of the MACD histogram is flattening which is a reflecting of consolidation. The RSI (relative strength index) which is a momentum oscillator that measures overbought and oversold level is printing a reading of 50, which is in the middle of the neutral range and reflects consolidation.