Gold Price Prediction for July 14, 2017

Gold prices attempted to move higher on Thursday but were capped near resistance at the 10-day moving average near 1,222.  Support on the yellow metal is seen near the July lows at 1,204. A break of this level would lead to a test of the March low at 1,197.  Stronger than expected U.S. PPI kept gold prices capped.  Momentum has turned neutral as the MACD (moving average convergence divergence) index prints in the red with a flat trajectory which reflects consolidation.

U.S. PPI Came in Stronger than Expected

U.S. PPI edged up 0.1% in June, with the core up 0.1% as well. There were no revisions to May which posted a flat headline reading with a 0.3% increase in the ex-food and energy component. On an annual basis, PPI slowed to a 2.0% year over year pace from 2.4% year over year. The core dipped to 1.9% year over year from 2.1% year over year. For the internals, Goods prices were up 0.1% as a 0.6% increase in food offset a 0.5% decline in energy. Services costs were up 0.2%.