Gold Price Prediction for August 24, 2017

Gold prices moved higher testing resistance as Eurozone inflation appears to be on the mend.  Prices tested the 1,292 level and are poised to test the August highs near 1,300.  Support on the yellow metal is seen near the 10-day moving average at 1,284. Positive momentum is decelerating as the MACD (moving average convergence divergence) index is poised to generate a sell signal which the MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

PMIs Suggest Inflation is Recovering

Eurozone PMIs suggest inflation is on the mend, with Markit reporting that the “recent trend of easing inflationary pressures came to an end in August, with cost inflation picking up for the first time since February”. At the same time, the manufacturing PMI showed that manufacturing orders were boosted by “the fastest rise in exports for six-and-a-half years”.