Gold Price Prediction for August 4, 2017

Gold prices moved higher bouncing off of support near the 10-day moving average at 1,261.  The ECB bulletin shows that the ECB believes monetary accommodation will be necessary but supportive financing conditions were positive which buoyed the Euro. Resistance on the yellow metal is seen near the June highs at 1,296. Positive momentum has decelerated, as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation.

ECB Bulletin is Not A Dovish as thought

The introductory bulletin in the latest ECB report confirms that the central bank is getting more optimistic about the recovery, with risks to the outlook judged to be broadly balanced. However, the central bank stressed that supportive financing conditions “are necessary to make continuous progress towards a sustained convergence of inflation rates to levels below, but close to 2% over the medium term”.