Gold Price Prediction – Prices Consolidate Ahead of CPI and Fed

Key Insights

• Gold prices edged lower on Thursday.
• The dollar recaptured its upward trend.
• Treasury yields rebounded across the curve.

Gold prices slipped on Thursday. A Strong greenback and higher yields capped gold price gains. Since gold is quoted in dollars, a stronger dollar generates headwinds for the yellow metal. CPI is expected to come in hot but how hot will determine the direction of gold prices.

 Jobless claims for the week ended June 4 totaled 229,000, an increase of 27,000 from the upwardly revised level, more than the 210,000 expected. The last time initial claims were that high was in January. 15. Continuing claims, which run a week behind the headline number, were unchanged at just over 1.3 million, below estimates of 1.35 million.

The four-week moving average for continuing claims declined slightly to 1.32 million, the lowest level since January 10, 1970.

Technical Analysis

Gold prices slipped near support near the 200-day moving average at 1,842. Resistance is seen near the 50-day moving average at 1,885.

Medium-term momentum is flat. The  MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.