Gold Price Prediction for July 31, 2017

Gold prices moved higher on Friday as the dollar continued to retreat paving the way for higher gold prices. Higher than expected inflation data released in Europe and Japan, buoy European and Japanese  yields and lifted the Euro and the Yen against the dollar.  Resistance is seen near the June highs at 1,294. Support is seen near the 10-day moving average at 1,250.  Momentum is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory.

Japan Inflation Was Stronger Than Expected

Japan’s core CPI increased by 0.4% in June year over year, compared to expectations of a 0.3% increase.  Stripping away the effect of fresh food and energy, consumer prices were unchanged in June from a year ago.  Core consumer prices in Tokyo, available a month before the nationwide data, rose 0.2% in July from year over year, versus expectations of a 0.1% annual rise. Higher inflation could lead to expectations that the BOJ would reduce accommodation.