Gold Price Prediction for September 6, 2017

Gold prices surged higher in the wake of this weekend’s hydrogen bomb detonation that brought forward a risk aversion trade that paved the way for higher gold prices.  The yellow metal surge breaking out above resistance which was seen near the November 6, 2016 highs at 1,337.  Support on the yellow metal is seen near the 10-day moving average at 1,312.  The next level of target resistance on gold prices is seen near the July 2016 highs at 1,371.

Momentum is Positive but Gold is Overbought

Momentum is positive as the RSI (relative strength index) which is a momentum oscillator that measures accelerating and decelerating momentum, broke out to fresh 5-month highs, which reflects accelerating positive momentum. The only caveat is that the current reading of 74, is above the overbought trigger level of 70 and could foreshadow a correction in gold prices.