Gold Price Prediction for September 15, 2017

Gold prices rebounded from session lows on Thursday following a stronger than expected U.S. consumer inflation report.  Prices closed near their highs but were unable to recapture resistance near the 10-day moving average at 1,333. A break of this level would likely lead back to the September highs at 1,357. Support is seen near the August 30, lows at 1.298. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

CPI Was Stronger than Expected

U.S. CPI rose 0.4% in August, with the core rate increasing 0.2%, a little hotter than expected. There were no revisions to July data that showed gains of 0.1% for both rates. The annual pace accelerated to 1.9% year over year for the headline, versus July’s 1.7%, while the ex-food and energy component was steady at 1.7% year over year. Energy prices surged 2.8% thanks to Harvey, following the 0.1% July dip, and is the first increase since April.