Technical Analysis Gold for 8/28/15

Gold prices moved higher on Friday rebounding following Thursday’s fall. Prices were able to bounce after testing support near the 20-day moving average at $1,118.  Resistance is seen near the recent highs at $1,170.  Momentum remains positive as the MACD (moving average convergence divergence) index prints in positive territory with an upwards sloping trajectory.

On the economic front, helping boost gold prices was an increase in consumer spending. The Commerce Department reported on Friday that consumer spending increased 0.3 percent after an upwardly revised 0.3 percent rise in June. Personal income increased 0.4 percent in July. Wages and salaries moved higher by 0.5 percent, which was the largest rise since November 2014. With income gains outpacing spending, the saving rate increased to 4.9 percent from 4.7 percent in June.