Gold Price Prediction for August 25, 2017

Gold prices consolidated and moved lower on Thursday ahead of Friday’s speeches from Yellen and Draghi. Fed speak supports further removal of accommodation, which Yellen could touch on Friday. Higher rates will buoy the dollar generating headwinds for the yellow metal. Support is seen near the 10-day moving average at 1,284. Resistance is seen near the August highs near 1,300. Momentum is neutral as the MACD prints near the zero index level with a flat trajectory which reflex consolidation.

Fed’s George is Hawkish

KC Fed’s George continues to support the gradual removal of accommodation. Despite low inflation, she believes there’s still room for a rate hike this year, although she’ll assess upcoming data to see if that view still makes sense. It’s important not to be too focused on a point estimate and lose sight of the broader trends. The economy is also in a good place to begin unwinding the balance sheet.