Gold Price Prediction for July 21, 2016

Gold prices were punished on Wednesday dropping $17per ounce, or 1.25% at 1,313.45 lows, before bouncing up to 1,317 into the close. Short term support on gold prices is seen near an upward sloping trend line that connects the lows in May to the lows in June and comes in near 1,309.   A break of this level would likely bring the key 1,300.00 level into focus if breached. A four-month high in the dollar index this, along with the return of risk-on trading conditions have kept the pressure on gold prices.
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Resistance on the yellow metal is seen near the 10-day moving average near 1,341.  Momentum remains negative as the MACD (moving average convergence divergence) index recently generated a sell signal.  The index is printing in the red with a downward sloping trajectory which points to lower prices for the yellow metal.