Gold Price Prediction for January 22, 2017

Gold prices rebounded near support at the 10-day moving average at 1,327.  Target resistance on the yellow metal is seen near the September highs at 1,352.  The dollar held on to gains today, and soft German producer prices weighed on the European currency.  Momentum is neutral as the MACD (moving average convergence divergence) histogram is printing near the zero index level with a flat trajectory which reflects consolidation.

German Producer Prices Edged Lower

German producer price inflation dropped back to 2.3% year over year in December from 2.5% year over year in the previous month, with prices up 0.2% month over month. Base effects from basic goods and non-durable goods items were the main driving factors behind the deceleration in the annual rate, with energy price inflation actually accelerating slightly to 3.1% year over year from 3.0% year over year in the previous month.