Technical Analysis Gold for 8/11/15

Gold prices edged higher on Monday as broader dollar weakness gave a boost to the yellow metal.  This comes despite comments from the Fed Lockhart who says that he is still disposed to September lift-off of interest rates, though waiting a month or two won’t be decisive for the economy and a gradual tightening pace means something less frequent than a hike at each meeting. He sees evidence of inflation heating up, though low global commodity prices could be a concern if they signal weak global demand.

Gold prices bounced off of the 10-day moving average at $1,091 and seemed to have hit resistance near the 20-day moving average at $1,104.  Momentum has turned positive with the MACD (moving average convergence divergence) index generating a buy signal. Additionally, the relative strength index is moving higher with price action which reflects accelerating positive momentum.