Gold Price Prediction for January 11, 2018

Gold prices initially moved higher on Euro strength but was unable to break out and closed back in its recent tight range.  Weaker than expected import prices took the luster off the yellow metal. Prices are forming a continuation pattern that is a pause that refreshes higher.  Support is seen near the 10-day moving average which coincides with the recent breakout level at 1,306. Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation.

U.S. Import Prices Rose

U.S. import prices rose 0.1% in December, though export prices dipped 0.1%. The 0.7% November increase in import prices was revised slightly higher to 0.8% while the prior 0.1% October gain was nudged to 0.2%. The 0.5% export price gain was not revised. On a 12-month basis, import prices slowed to 3.0% year over year versus 3.3% year over year which was revised from 3.1% year over year, and export prices slipped to 2.6% year over year compared to 3.1% year over year. For imports, petroleum prices were up 2.0% after surging 8.1% previously which was revised from 7.2%.