Technical Analysis Gold for November 23, 2015

Gold prices retraced early gains after ECB Chief Draghi said he will do what it must to raise inflation, if the central bank concludes that “the balance of risks to our medium-term price stability objective is skewed to the downside”. “If we decide that the current trajectory of our policy is not sufficient to achieve that objective, we will do what we must to raise inflation as quickly as possible.

The yellow metal reversed leaving resistance near the 10-day moving average at 1,082.  Support is seen near the November lows at 1,063.  Momentum is negative but the trajectory of the MACD is changing and is poised to generate 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 RSI moved higher with price action reflecting accelerating positive momentum, while printing a reading of 30.63, which is just above the oversold trigger level fo 30.