Gold Price Prediction for September 7, 2016

Gold prices surged as the dollar lost ground following weaker than expected jobs data report both on Friday and Tuesday in the United States.  Prices surged after testing support near the 10-day moving average near 1,323.  Resistance is seen near the August highs at 1,367. Momentum on gold prices has turned positive as the MACD (moving average convergence divergence) index generated a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.  The index moved from negative to positive territory confirming the buy signal.

U.S. Labor Market Conditions index fell 0.7 points in August after July’s 1.3-point increase. The bounce in July came after six consecutive monthly declines and was the lone positive reading in 2016. The index is comprised of 19 different indicators.