Gold Prices Prediction for May 12, 2017

Gold prices edged higher on Thursday making a lower low and a higher high which is an outside day. The range was so small that it is hard to say that this outside day was a reversal, but it should be noted.  Resistance on gold is seen near the 10-day moving average at 1,236. Support is seen near the March lows at 1,194.  The BoE kept rates unchanged along with keeping the QE stable which help gold prices gain traction.

The RSI Generates a Buy Signal

The RSI (relative strength index) which is a momentum oscillator that measures accelerating negative and positive momentum, moved from oversold territory below 30, to neutral territory at 34, which reflects accelerating positive momentum and is considered a buy signal.  The MACD (moving average convergence divergence) index histogram is moving higher reflecting accelerating positive momentum.