Technical Analysis Gold for November 17, 2015

Gold prices whipsawed on Monday.  The initial reaction to the terrorist attached in Paris was to bid up the yellow metal.  Traders pushed prices up to the 10-day moving average near 1,094, which proved to be robust resistance.  During the U.S. trading session as riskier asset gained traction gold lost its luster and moved lower testing support near the November lows at 1,082.  The strength in the greenback versus the Euro also generated headwinds for gold prices. Since gold is priced in U.S. dollar, strength in the dollar makes it difficult for gold prices to rise.

Momentum on gold prices remains negative.  The MACD (moving average convergence divergence) index is printing in negative territory with a downward sloping trajectory which points to lower prices.  The only caveat is that the RSI (relative strength index) is printing a reading of 25, which is below the oversold trigger level of 30 and could foreshadow a correction.