Gold Price Prediction for July 27, 2016

Gold prices consolidated ahead of the Fed and the BoJ after Markit reported a softer than expected PMI flash report for July.  Resistance on the yellow metal is seen near the 10-day moving average at 1,328.  Support is seen near 1,310.  Momentum remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.
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U.S. Markit services PMI fell 0.5 points to 50.9 in the flash July reading, after inching up to 51.4 in June from 51.3 in May. It was at 55.7 a year ago. The numbers indicate the service sector remains in expansion for a 5th straight month, but only marginally, after slipping to 49.7 in February. The employment component rose to 52.6 from 52.4. The composite index edged up 0.3 points to 51.5 versus 51.2 in June and 50.9 in May.