Gold Price Prediction for September 5, 2017

Gold prices surged higher hitting a fresh 11-month high, in the wake of the detonation of a hydrogen bomb over the weekend by North Korea.  Prices were unable to hold above the 1,337 highs seen on November 6, 2017 following the U.S. Presidential election.  Support is seen near the 10-day moving average at 1,306.  Resistance is seen near 1,337.

Momentum on the Yellow Metal is Positive

Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The relative strength index (RSI) moved higher with price action, which reflects accelerating positive momentum on the yellow metal. The RSI is breaking out which reflects positive momentum. The current reading of 72, is above the overbought trigger level of 70 and could foreshadow a correction.