Gold Price Prediction for January 23, 2017

Gold prices moved higher on Friday bouncing off the 10-day moving average at 1,198.  An upward revision to Eurozone inflation helped buoy the prices of the yellow metal.  Resistance is seen near the January highs at 1,219.  The RSI (relative strength index) failed to make a higher high reflecting decelerating positive momentum. The dollar edged lower paving the way for lower gold prices.  This will be the 4^th consecutive weekly higher close for gold prices after bottoming in the middle of December.

The ECB said that short term inflation expectations were revised higher. The ECB’s latest survey of professional forecasters lifted the projection for HICP inflation this year to 1.4% from 1.2% in the last survey in October. The forecast for 2018 was lifted to 1.5% from 1.4%, and 2019 the headline rate is expected to lift to 1.6%, although longer term inflation expectations remained unchanged at 1.8%.