Yahoo Finance Gold Price Prediction – Gold Rebounds Following Trump Commentary on the Dollar and Rates
The dollar moved lower following commentary from President Donald Trump who did and interview and a follow up tweet describing his displeasure with the rise in interest rates, along with the rise in the dollar. This helped gold prices gain a foot hold and move higher. Gold prices were unable to take out the prior days lows and has generate a reversal pattern that could test higher prices. Sold German producer prices also helped the Euro gain traction which buoyed the yellow metal. Support is seen near the July low at 1,211 and then the July 2017 lows at 1,204. Resistance is seen near the 10-day moving average at 1,239. Positive momentum is accelerating. The RSI (relative strength index) pushed above the oversold trigger level of 30, which reflects accelerating positive momentum. The fast stochastic generated a crossover buy signal and pushed higher which also reflects accelerating positive momentum.
German PPI inflation accelerated
German PPI inflation accelerated to 3.0% year over year in June from 2.7% year over year in the previous month. The uptick was in line with expectations and is largely due to base effects from energy price inflation. The annual price increase for fuels accelerated to 13.6% year over year from 10.2% year over year, while heating oil prices jumped 37.4% year over year in June, despite falling -1.7% month over month. This ties in with Eurozone CPI inflation yesterday, which showed an acceleration in the headline rate, but a dip in core inflation.
Eurozone May current account narrowed
Eurozone May current account narrowed to EUR 22.4 billion in May on a seasonally adjusted basis, from EUR 29.6 billion in the previous month. Accumulated data show a surplus of EUR 406 billion in the 12 months to May 2018, up from EUR 360 billion in the 12 months to May 2017. So despite the narrowing in May, the longer term trend continues to show a widening of the surplus, which will add to the arguments of those criticizing the focus on exports and lack of investment at home. The unadjusted financial account showed that eurozone residents made net acquisitions of foreign portfolio investment securities of EUR 548 billion in the 12 months to may this year, up from EUR 476 billion in the 12 months to May last year, at the same time the purchases of euro area portfolio investment securities amounted to EUR 216 billion in the 12 months to May, up from EUR 189 billion.
This article was originally posted on FX Empire
