Gold prices consolidated after last weeks tumble, and is trading near its recent lows following a drop through support near a horizontal trend line that extends the lows seen in October which is resistance near 1,260. Additional resistance is seen near the 10-day moving average at 1,268. Support on the yellow metal is seen near the July 2017 lows at 1,207.
Momentum on Gold is Negative but Prices are Nearly Oversold
Momentum on gold price is negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This occurs as the MACD index (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD signal). Prices are also nearly oversold. The RSI (relative strength index) on gold prices is printing a reading of 31, just above the oversold trigger level of 30 which could foreshadow a correction in prices.
This article was originally posted on FX Empire
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