Gold Price Prediction for June 27, 2017

Gold prices moved lower on Monday, as riskier assets gained traction following Italy’s move to buoy failing banks.  The dollar gained traction paving the way for lower gold prices.  Prices tumbled down and is poised to test target support near an upward sloping trend line that comes in near 1,233.  Resistance on the yellow metal is seen near the 10-day moving average at 1,252.  Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices for the yellow metal.

Italy Pony’s Up Money for Failing Banks

Italy puts up EUR 17 billion for failing banks. Interventions at Banca Popolare di Vicenza SpA and Veneto Banca SpA includes state support for Intesa Sanpaolo SpA, which has taken over the good assets of the troubled banks for a token amount of EUR 1. Intesa can tap about EUR 5.2 billion to take on assets without hurting capital ratios. An additional EUR 12 billion will be available to cover potential further losses. The European Commission has approved the plan, which will split the lenders into good and bad banks.