Gold Price Prediction for July 27, 2017

Gold prices moved higher following the Fed’s interest rate decision. While most investors did not expect any action, there were thoughts that the Fed could introduce its plan on unwinding its balance sheet.  The Fed did say that they will moved toward further normalization some-time this year and sooner rather than later.  The dollar eases on the Fed’s inaction, paving the way for higher gold prices. The Fed said that the economy is modest running below 2%, which was slightly below its estimate.

Gold is Testing Resistance

Prices of gold moved higher and are testing resistance near a downward sloping trend line at 1,256.  Support on the yellow metal is seen near the 10-day moving average at 1,241.  Momentum is positive, as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices for the yellow metal.