Gold Price Prediction for June 14, 2017

Gold prices rebounded off the lows of the session on Tuesday ahead of the Fed meeting this week.  The Fed is widely expected to increase interest rates by 25 basis points, but to point to recent weakness in the retail space. Prices bounced near 1,258, but continue to trade below resistance near the 10-day moving average at 1,274.  Support is seen near an upward sloping trend line that comes in near 1,225.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses below the 9-day exponential moving average of the spread.

Mixed PPI Keeps Gold in Check

U.S. PPI was unchanged in May, while the core rate increased 0.3%. There were no revisions to April’s 0.5% headline jump and the 0.7% surge in the ex-food and energy component. On an annual basis, PPI slowed to 2.4% year over year compared to 2.5% year over year for April. But the core rate rose to 2.1% year over year versus 1.9% year over year.