Gold Price Prediction for February 28, 2017

Gold prices reversed course after hitting a higher high, but was unable to hold on to gains following a softer than expected EU M3 report.  While the optics of the reversal are negative, prices will need to take out Friday’s lows for there to be further downside.  Support is seen near the 10-day moving average at 1,240, while resistance is seen near Monday’s highs at 1,263. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal.  The signal comes out of a consolidation period, which could point to higher prices.

Velocity of Money Decelerates

Eurozone M3 growth decelerated to 4.9% year over year from 5.0% year over year in the previous month. Loan growth was mixed, with the growth rate for loans to non-financial corporations falling to 1.7% from 1.9%, while lending to households accelerated to 2.4% year over year from 2.2% year over year as consumer credit growth rose to 4.1% year over year from 3.9% year over year.