Gold Price Prediction for September 19, 2017

Gold prices edged lower as risk aversion abated and softer than expected inflation figures were confirmed in Europe. Prices broke down and are poised to test support near the 50-day moving average at 1,283. Resistance on the yellow metal is seen near the 10-day moving average at 1,331.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses below the 9-day exponential moving average of the spread.

Eurozone August Inflation Was Below the ECB’s Target

Eurozone August HICP inflation was confirmed at 1.5% year over year, up from 1.3% year over year in the previous month and in line with the preliminary number. This is below the ECB’s target of 2%. Core inflation was confirmed at 1.2% year over year, unchanged from July. Energy price inflation accelerated to 4.0% year over year from 2.2% year over year and was a key driver behind the uptick in the headline rate in August.