Gold Price Prediction for July 11, 2017

Gold prices rebounded generating a doji day which is a close and an open at the same level which reflects consolidation.  Resistance on the yellow metal is seen near the 10-day moving average at 1,231.  Support is seen near the July lows at 1,204.  Comments from the Bank of France Governor kept the Euro in check helping gold prices remain steady.  Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.

Villeroy Confirms Steady ECB

Comments from Bank of France governor Villeroy over the weekend seem to confirm that the central bank will refrain from policy and guidance changes at the July meeting and wait until September when the next set of forecasts are due to decide on whether to tweak its stimulus settings. At the same time ECB Chief Economist Praet said in a newspaper article that “we still need a long period of accommodative policy”, in what looks like a fresh attempt to calm the nerves of investors, after some hawkish comments saw Eurozone yields rising last week.