Gold Price Prediction for February 9, 2017
Gold price continued to move higher on Wednesday and are poised to test resistance near the October lows at 1,240. Concerns over the right-wing vote in France during the April elections is adding fear into the capital markets lifting yellow metal prices. Support is seen near the 10-day moving average at 1,213. The RSI (relative strength index) is testing resistance near the January highs at 70, and a break would reflect accelerating positive momentum. One caveat is that this level is above the overbought trigger level which could foreshadow a correction.
Momentum has recently turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The index is printing in the black with an upward sloping trajectory which points to higher prices for the yellow metal.