Gold Price Prediction for July 12, 2017

Gold prices continued to consolidate on Tuesday ahead of Yellen’s testimony to Congress which is a semi-annual speech formerly called the Humphrey-Hawkins testimony.  She will likely be asked about unwinding the Fed’s balance sheet which could alter the market.  A larger than expected reduction would significantly increase yields which would help buoy the dollar and pave the way for lower gold prices.

Momentum Remains Negative on Gold

The yellow metal continues to trade below and upward sloping trend line which was former support now resistance. The first level of resistance is the 10-day moving average at 1,227.  Support is the July lows at 1,204. A break of this level would lead to a test of the March lows at 1,197.  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 of the yellow metal.