Technical Analysis Gold for November 27, 2015

Gold prices traded in less than a $5 range into the North American Trading session. The low has been 1,069.75, which now has the feel of being a firm near-term support. Volumes and impetus lacking with both U.S. markets and date out of the picture, due to the Thanks Giving Holiday. The market may be dull today, but the market still appears to be gold bearish in anticipation for a policy easing from the ECB next week.

Momentum remains negative but the MACD (moving average convergence divergence) 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 index moved from negative to positive territory confirming the buy signal. The RSI (relative strength index) index is printing a reading of 31, which is just above the oversold trigger level of 30.