Technical Analysis Gold for 11/12/15

Gold prices continued to move lower as global inflation continues to fall.  On Wednesday Chinese released softer than expected numbers. The October CPI slowed to a 1.3% year over year pace from 1.6% year over year in September. The core rate fell to a 1.5% year over year clip from 1.6%. For the month, CPI was -0.3% from 0.1% in September.

Support on gold prices is seen near the July lows at 1.076.  Resistance is seen near the September lows at 1,100, and then the 10-day moving average at 1,111.  Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory.  The only caveat is that the RSI is printing a reading of 26, which is below the oversold trigger level of 30 and could foreshadow a correction.