Gold Price Prediction for March 9, 2017
Gold prices continued to decline, dropping for the 3rd consecutive trading session, as U.S. yields soared pushing the dollar higher and paving the way for lower gold prices. The U.S. 10-year yield surged to 2.56%, and the Fed fund futures have now fully priced on a full rate hike for March. The market has yet to fully discount 3-interest rate hikes in 2017. Wednesday’s stronger than expected ADP private payroll report was the catalyst for the decline in the yellow metal.
Momentum on Gold is Negative Following ADP Report
Support on gold is seen near the January 26 low at 1,180. Resistance is seen near the 10-day moving average at 1,237. Momentum is negative as the MACD (moving average convergence divergence) recently generated a crossover sell signal. The index is printing in the red with a downward sloping trajectory which points to lower prices for the yellow metal.