Gold Price Prediction for August 14, 2017

Gold prices continued to move higher on Friday, after breaking out this week and poised to test resistance near the June highs at 1,296. The standoff between the U.S. and North Korea is driving market volatility and generating demand for safe-haven assets such as gold. Softer than expected consumer inflation weighed on the dollar paving the way for higher gold prices. Support on the yellow metal is seen near the 10-day moving average at 1,269. Momentum is positive as the MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices for the yellow metal.

CPI Was Softer than Expected

U.S. headline CPI rose 0.1% in July for both the headline and core rates. There were no revisions to June, where the headline price reading was unchanged while the core edged up 0.1%. Compared to last July, headline prices picked up a bit to a 1.7% year over year pace versus 1.6% year over year, while the ex-food and energy component was flat at a 1.7% year over year clip.