Gold Price Prediction for September 7, 2017

Gold prices moved lower on Wednesday giving back most of the gains experienced on Tuesday. The yellow metal generated an inside day, which is a lower high and a higher low, which reflects indecision. Traders now await the ECB meeting, which could have a profound effect on prices. A more hawkish that expected result would lift the Euro paving the way for higher gold prices.

Momentum Remains Positive

Support on gold is seen near the 10-day moving average at 1,1316. Resistance is seen near the July 2016 highs at 1,1375. 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 RSI (relative strength index) moved lower from overbought territory, which is generally a bearish signal, and is printing a reading of 68, on the upper end of the neutral range.