Gold Price Prediction for March 30, 2017

Gold prices edged higher despite a stronger greenback, as stronger than expected German import inflation kept prices of the yellow metal buoyed. Resistance is seen near the 200-day moving average at 1,258. Support is seen near the 10-day moving average at 1,242. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices.

German Import Price Inflation Jumped in February

German February import price inflation jumped to 7.4% year over year from 6.0% year over year in January. The number was higher than expect and not just driven by energy prices, with import price inflation excluding energy accelerating to 3.7% year over year from 2.5% year over year in the previous month. Food price inflation is also picking up, although this again is also largely due to base effects and with headline HICP expected to fall back again in March.