Gold Price Prediction for May 1, 2017

The deluge of European data showed mixed results, but Eurozone inflation and M3 growth point to higher inflation, which failed to buoy gold prices.  The yellow metal remains rangebound, edging lower forming a small bear flag pattern which is a continuation pattern, where prices could next test support near a horizontal trend line at 1,241. A break of this level would lead to a test of an upward sloping trend line at 1,235. Resistance on gold prices is seen near the 10-day moving average at 1,275.

Eurozone M3 Grows More than Expected

Eurozone M3 growth jumped to 5.3% year over year from 4.7% year over year in the previous month. Lending to non-financial corporations rising 1.6% year over year, up from 1.4% year over year in the previous month. Lending to households rose 2.6% year over year, up from 2.4% year over year in February, with consumer credit as well as lending for house purchases jumping higher again.