Gold Price Prediction for December 22, 2016

Gold prices stabilized at lower levels following a stronger than expected French inflation report which confirmed higher inflation in Europe.  Resistance on the yellow metal is seen near the 10-day moving average at 1,145.  Prices are oversold as the RSI (relative strength index) prints a reading of 25, well below the oversold trigger level of 30 which could foreshadow a correction.  Momentum as reflected by the MACD is neutral with the index printing at zero with a flat trajectory.

French producer price inflation jumped higher in November, with the annual reading rising to -0.2 % year over year from -0.8% year over year, this follows a much higher than expected German number yesterday, where the annual rate rose to 0.1 %year over year from -0.4% year over year and Portuguese readings on Monday, which saw the rate jumping to 0.0 %year over year from -1.0% year over year.

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