Gold Price Prediction for July 5, 2017
Gold prices are consolidating their recent losses, following a softer than expected Eurozone PPI report, and forming a bear flag pattern after slicing through trend line support near 1,232. Target support is now seen near the May lows at 1,213. Resistance is seen near the 10-day moving average at 1,241. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices for the yellow metal.
Eurozone PPI Contracted
Eurozone producer price inflation fell back to 3.3% year over year in May from 4.3% year over year in the previous month. The deceleration was mainly due to base effects and not unexpected after national data, but it will help the arguments of the doves at the ECB, who remain cautious about moving too quickly towards tapering steps. Still, while the doves can point to the marked decline in the number, the hawks will stress that the headline rate remains quite high.
This article was originally posted on FX Empire