Gold Price Prediction for June 20, 2017

Gold prices are trading under pressure following the hawkish tone from the Fed that was delivered last week following their decision to raise interest rates. Prices are poised to test trend line support generated from an upward sloping trend line that comes in near 1,240. A break of this level would lead to a test of the May lows near 1,216. Resistance on the yellow metal is seen near the 10-day moving average at 1,267.

Momentum on Gold is Negative

Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower price for the yellow metal. The RSI (relative strength index) broke down moving lower with price action which reflects accelerating negative momentum.