Gold Price Prediction for May 18, 2017

Gold prices moved higher on Wednesday as risk aversion continued to perpetuation in the wake the news that former FBI director Comey was approached by Trump to end the investigation into former National Security Advisor Flynn.  This would be considered obstruction of Justice and has roiled the markets on Wednesday.  Stocks tumbled and gold soared, as investors looked to head toward the exits.

Momentum Has Turned Positive

Gold Prices are testing resistance which is generated from and upward sloping trend line that comes in near 1,260.  The next level of target support would be the April highs at 1,295.  Additional support is seen near the 10-day moving average at 1,231.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occur as the spread (the 12-day EMA) minus the 26-day EMA) crosses above the 9-day EMA of the spread.  The index moved from negative to positive territory confirming the buy signal.