Gold prices slipped lower early in the trading session on Tuesday edging through support which is now resistance near the 10-day moving average at 1,330. Prices rebounded in the afternoon, despite a risk on rally, closing the session above the open. Stronger than expected UK inflation figures gave a boost to gold prices . The yellow metal has been under pressure as volatility declined following this weekend when North Korea failed to launch a new missile test.
Momentum has Turned Negative
Support is seen near the late-August lows at 1,300. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices for the yellow metal.
This article was originally posted on FX Empire
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