Gold Price Prediction for January 19, 2017

Gold prices edged lower as the dollar gained traction following a stronger than expected U.S. CPI that trumped the in line German CPI.  Support on the yellow metal is seen near the 10-day moving average at 1,193. Resistance is seen near the October lows at 1,241.  The RSI has dipped after printing a reading above 70, which is the overbought trigger level and could have foreshadowed a correction.

German HICP confirmed at 1.7% year over year, as expected, with prices up 1.0% month over month. The sharp acceleration from just 0.7% year over year in November was mainly due to base effects from lower energy prices and the breakdown showed that prices for heating oil jumped 21.9% year over year in December, after still falling -6.7% year over year in the previous month.