Gold Price Prediction for July 28, 2017

Gold prices formed a doji day which is one of indecision as conflicting forces drove prices.  While equities dropped generated short-term fear, the dollar gained traction following a stronger than expected U.S. durable goods report. Prices remain in a short term uptrend with resistance near the June highs at 1,296.  Support on the yellow metal is seen near the 10-day moving average at 1,246. 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.

Durable Goods Were Stronger Than Expected

U.S. durable goods orders bounced 6.5% in June following the revised 0.1% May decline. Transportation orders boosted the headline, surging 19.0% following the prior 1.6% drop which was revised from -3.0%. Excluding transportation, orders were up 0.2% versus 0.6% previously which was revised from 0.3%. But, nondefense capital goods orders excluding defense dipped 0.1% from the prior 0.7% gain which was revised from 0.2%. Shipments were unchanged in June after rising 1.2% in May which was revised from 1.0%. Nondefense capital goods shipments excluding aircraft were up 0.2% from 0.4% which was revised from 0.1%. Inventories rose 0.4% from 0.1%.