Gold Price Prediction for July 7, 2017

Gold prices consolidate to consolidate as the Euro strengthened as European yields moved higher. Gold prices are hovering near the May lows with target support near the 1,213 level.  Resistance is seen near former support which is an upward sloping trend line that coincides with the 10-day moving average at 1,235.  Momentum remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.

European Taper Tantrum Begins

Taper tantrum hits Eurozone bond markets pushing the 10-year Bund yield above the 0.5% mark and at 0.56% is at the highest level since early 2016. Comments from ECB’s Praet urging caution and patience on monetary policy did little to stop the sell off the rise in yields. The minutes showed that officials are worried about adverse market moves as response to policy comments, which explains, while Praet and Draghi still kept the easing bias on QE in place, even though tapering is expected to start early next year.