Gold Price Prediction for May 26, 2017

Gold prices consolidated and moved lower as a weaker than expected UK GDP report, allowed the dollar to gain traction and paving the way for lower gold prices.  Prices generated an inside day which is a consolidating scenario that reflects indecision. Support is seen near the 10-day moving average at 1,249, while resistance is seen near the weekly highs at 1,265.  Momentum is neutral as the MACD histogram flat lines, edging lower reflecting decelerating positive momentum.

UK Q1 GDP Was Revised  Lower

UK Q1 GDP data was unexpectedly revised lower in the second estimate, down to 0.2% quarter over quarter growth from the 0.3% reported in the first release. This compares to the 0.7% quarter over quarter growth seen in Q4, and also shows the UK economy to be underperforming the Eurozone’s growth rate of 0.5%. The year over year rage was trimmed to 2.0% from the 2.1% preliminary estimate.