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Gold Price Prediction for February 14, 2018

David Becker

Gold prices moved higher as the dollar lost ground against most major currencies.  Prices tested resistance near the 10-day moving average at 1,330, and a break of this level could lead to a test of the January high at 1,366. Support is seen near the February lows at 1,308.  Stronger than expected small business optimism failed to lift the dollar versus the Euro which paved the way for higher gold prices.

Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red but the trajectory of the MACD histogram is upward sloping which reflects consolidation.  The fast stochastic has moved higher out of oversold territory, after recently generated a crossover buy signal.  This points to accelerating positive momentum. Additionally, the RSI (relative strength index) moved higher with price action, which reflects accelerating positive momentum. The current reading on the RSI is 51, which is in the middle of the neutral range and reflects consolidation.

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This article was originally posted on FX Empire