Gold Price Prediction for May 10, 2017

Gold prices moved lower for the 7^th straight trading session, declining as riskier assets continue to gain traction.  Stronger U.S. yields and the likelihood that the Fed will raise rates at its meeting in June have put downward pressure on the yellow metal. Additionally, it appears that the ECB will curtail their dovish tone, which should also make gold less attractive.

Gold Prices are Oversold

Gold prices continue to move lower after breaking below trend line support generated by an upward sloping trend line that comes in near 1,240.  Additional resistance is seen near the 10-day moving average at 1,245.  Support is seen near a horizontal trend line that coincides with the March lows at 1,194.  Prices are now oversold, as the RSI (relative strength index) moved lower with price action, and is printing a reading of 29, below the oversold trigger level of 30 which could foreshadow a correction.