Gold Price Prediction for August 3, 2017

Gold prices formed a doji day for the second consecutive day, which reflect indecision by market participants.  Prices remain in a short term up trend with support seen near the 10-day moving average at 1,268.  Resistance is seen near the June highs at 1,296. Softer than expected inflation in Europe helped cap golds upside despite a continued rally in the EUR/USD. Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a downward sloping trajectory which points to consolidation.

Eurozone PPI Contracted

Eurozone PPI inflation fell back to 2.5% year over year from 3.4% year over year in the previous month. Much of the decline was due to energy prices, which had less of an inflating role in June, as energy price inflation fell back to 2.9% Year over year from 3.5% year over year in the previous month. Excluding energy the PPI rate eased to 2.2% year over year from 2.4% year over year.