Gold Price Prediction for June 22, 2017

Gold prices remained buoyed following the minutes of the BOJ April meeting which showed that the central bank was planning on keeping an easing bias.  There is no clear fear in the market place, which is keeping gold prices capped, while volatility remains at historical lows. Support on the yellow metal is seen near an upward sloping trend line that comes in near 1,229.  Resistance is seen near the 10-day moving average at 1,258.  Momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.

Minutes are Dovish

The Bank of Japan minutes for the April 26-27 meeting showed that policymakers are not concerned if government deb purchases fall below the guidance when performing their open market operations. The Bank of Japan Governor Haruhiko Kuroda said maintaining the current easy monetary conditions is appropriate because prices are lagging improvements in the economy and remain distant from the central bank’s inflation target.