Gold Price Prediction – Prices Consolidate as the Greenback Rises
Gold prices edged lower on Friday but remains below key resistance levels. The yellow metal was able to remain buoyed despite a rally in the Greenback. U.S. PPI came in stronger than expected, helping to boost yields and driving up the dollar.
Your capital is at risk
Tecnical analysis
Gold prices consolidated and edged lower. Prices remained below resistance seen near the 50-day moving average, at 1,797. Additional resistance is seen near the 10-day moving average at 1,809. Target support is seen near the August lows at1,672. Short-term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This sell signal occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
U.S. PPI Rises More than Expected
According to the U.S. Labor Department, U.S. producer prices increased more than expected in July. The producer price index (PPI) 1.0% last month after rising 1.0% in June. Expectations were for PPI to rise by 0.6%. In the 12 months through July, the PPI jumped 7.8%, a record high since the measure was introduced just over a decade ago.