Gold Silver Reports – Gold Spot Price Forecast, Tips and Tricks for January 23, 2018 — Gold prices tested short-term support near the 10-day moving average at 1,329, and was able to bounce as trader’s focus on the movements of the dollar, to see if the recent weakness in the greenback perpetuates.
Gold Spot Price Forecast
A lower dollar will buoy gold prices, helping the yellow metal test resistance near the January highs at 1,344. The next level of target resistance on gold prices would be the September highs at 1,352. A break down below the 10-day moving average would lead to support near the January lows at 1,308. A close below this level would lead to a test of a downward sloping trend line near 1,285.
Momentum is turning negative as the MACD (moving average convergence divergence) index generates a crossover sell signal. This occurs as the MACD line (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 line). The MACD histogram is printing near the zero-index level which with a flattening trajectory which could foreshadow consolidation. The relative strength index (RSI) is moving sideways which reflects decelerating momentum. The current reading on the RSI is at 65, which is on the upper end of the neutral range, but well off the overbought levels seen earlier in January.
The Dollar is the Focus
The first FOMC meeting of 2018 is on the horizon, January 30, 31, but no changes are expected. This will be the last meeting chaired by Ms. Yellen, while it will include the new voting rotation with Williams, Mester, Bostic, and Barkin. Meanwhile, the market is still waiting for the Senate to confirm Jay Powell as the new Fed chairman. It emerged last week that SF Fed’s Williams is being considered for the Vice Chair spot, which could help cement Fed stewardship.
The Senate Agreed to a Continuing Resolution
The immediate focus was on U.S. government which went on partial shutdown on Saturday as the Senate failed to pass a continuing resolution. On Monday, the Majority and Minority heads announced an agreement. Critical government services remained open. This situation is nothing new, with the last occurrence in 2013, and there’s no significant impact on the economy.
