Gold Price Prediction for July 4, 2017

Gold prices tumbled, slicing through trend line support and testing target support near the May lows at 1,213.  A stronger than expected U.S. ISM manufacturing report, buoyed the dollar paving the way for lower gold prices.  Resistance is seen near the 10-day moving average at 1,245.  Momentum is negative as the RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum.

The US ISM Surged

U.S. June ISM manufacturing index rose 2.9 points to 57.8, much stronger than expected, after inching up 0.1 point to 54.9 in May. It was 52.8 a year ago. This is now the highest for the year as it was 57.7 in February, and is the best since 57.9 in August 2014. The employment component jumped to 57.2 from 53.5, though is still just off the 58.9 in March, which was the peak since mid 2011. New orders climbed to 63.5 from 59.5. New export orders rose to 59.5 from 57.5. Prices paid fell to 55.0 from 60.5 and is the lowest since November. It was as high as 70.5 in March.