Gold Price Prediction For August 1, 2016

Gold prices gained traction following the better than expected Chicago PMI which was unable to buoy the greenback. The yellow metal found support near the 10-day moving average near 1,329, while resistance is seen near the July highs at 1,370. While the MACD is printing in the red, the trajectory of the index is turning upward and poised to generate a buy signal. The RSI turned higher with price action reflecting accelerating positive momentum.
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U.S. Chicago manufacturing PMI dipped 1 point to 55.8 in July, after having climbed 7.5 points to 56.8 in June from 49.3 in May. It’s better than expected, and is the second highest of the year. It is also better than the 53.7 a year ago. The index has been above the 50 expansion/contraction line in five of the seven months of 2016 so far, after posting sub-50 readings in seven of the twelve months of 2015.