Gold Price Prediction for August 15, 2017

Gold prices moved lower on Monday as risk aversion abates, after testing resistance on Friday near the June highs at 1,296. Softer than expected Chinese Retail Sales helped soften gold prices. Trader appear to have put the standoff between the U.S. and North Korea in the rear-view mirror for the momentum. Support on the yellow metal is seen near the 10-day moving average at 1,251.  Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.

Chinese Retail Sales Were Softer Than Expected

Chinese reported softer than expected Retail Sales on Monday, showing that the world’s second largest economy might have contracted in the Q3. Retail sales increased at a 10.4% year over year, again falling shy of growth in June which was 11%, and lower than forecasts that retail sales would increase by 10.8%. Fixed asset investment, or spending on infrastructure and property, rose at an 8.3% year over year in the first seven months of the year, down from a forecast 8.6% rise.