Gold Price Prediction for July 26, 2017

Gold prices consolidated on Tuesday edging lower as the dollar gained traction as U.S. yields moved higher.  Weaker than expected German import price inflation took some of the luster out of the yellow metal.  Support on gold is seen near the 10-day moving average at 1,238.  Resistance is seen near the weekly highs at 1,258.  Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. Prices are forming a triple top and would need to eclipse the 1,295 level to avoid this scenario.

German Import Price Inflation Declined

German import price inflation fell back to 2.5% year over year from 4.1% year over year in the previous month, with prices down -1.1% month over month. Base effects from oil prices and currency moves are largely behind the drop in the headline rate and at 2.5% year over year import price inflation remains at elevated levels.