Gold Price Prediction for June 6, 2017

Gold prices broke out, moving above a downward sloping trend line that connects the highs in November to the highs in April and comes in near 1,279.  Support on the yellow metal is seen near the 10-day moving average at 1,265.  The next level of target resistance on gold prices is seen near the April highs at 1,294.  A break of this level would lead to a test of the November 8, highs at 1,337.

Momentum is Positive

Momentum on gold prices is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices for the yellow metal.  The RSI (relative strength index) which is a momentum oscillator that measures accelerating and decelerating momentum, moved higher after breaking out on Friday reflecting sustained positive momentum.