Gold Price Prediction for July 20, 2017

Gold prices consolidated as the dollar edged higher, following the stronger than expected housing starts report.  The recent string of data, until Wednesday, showed the U.S. economy was moderating, helping the dollar ease and paving the way for higher gold prices.  Support is seen near the 10-day moving average at 1,225, while resistance is seen near the 50-day moving average at 1,248. Momentum is positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal.

Housing Starts Cap Gold’s Upside

U.S. housing starts rebounded 8.3% to a 1.215 million pace in June, better than forecast, after the 2.8% decline in May to 1.122 million. The gain breaks a string of three straight monthly declines, and it’s only the second increase of the year. Single family starts rose 6.3% versus -2.9% previously, while multifamily starts jumped 13.3% from -2.4%. Building permits increased 7.4% to 1.254 after falling 4.9% to 1.168 million.