Technical Analysis Gold for 8/13/15

Gold prices continued to rebound on broader dollar weakness following the second consecutive devaluation of the Chinese Yuan by the Peoples Bank of China. 

Gold price bounded off of the 20-day moving average which is now seen as strong support near $1,100, and is poised to test resistance near former support at $1,142.  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.  The RSI (relative strength index) moved higher with price action reflecting accelerating positive momentum.