Yahoo Finance Gold Price Prediction for March 15, 2018
Gold prices attempted to move higher but were unable to pierce through trend line resistance. Wednesday Producer price report was in line with expectations and followed a relatively tame CPI which was released on Tuesday. The softer than expected U.S. Retail Sales weighed on U.S. yields, capping the dollar and helping to buoy gold prices.
Technicals
Gold prices tested resistance near a downward sloping trend line that comes in near 1,3130. Support is seen near the 10-day moving average at 1,324 and then an upward sloping trend line that comes in near 1,313. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which reflects consolidation.
U.S. Producer Prices Where in Line with Expectations
U.S. February PPI rose 0.2% with the core rate up 0.2% as well. There were no revisions to January where gains of 0.4% were recorded for both. Both figures were in line with expectations. The 12-month growth rates sped up a little to 2.8% year over year for the headline, from 2.7% year over year, and 2.5% year over year for the ex-food and energy component compared to 2.2% year over year. Goods prices declined 0.1% last month after rising 0.7% previously. Food costs slid another 0.4% from -0.2%, with energy prices dropping 0.5% after surging 3.4%. Service sector prices increased 0.3% after rising 0.3% in January.
U.S. Retail Sales Disappointed
U.S. February retail sales fell 0.1 % with the ex-auto component up 0.2%. Expectations were for a slight increase in the headline number. The 0.3% January decline was revised higher to -0.1%, and the unchanged sales ex-auto figure was nudged up to 0.1%, while December numbers were bumped down. Sales excluding autos, gas, and building materials edged up 0.1% versus the prior flat print. Motor vehicles and parts dropped 0.9% following the 0.9% January drop Gas station sales were down 1.2%. Furniture sales fell 0.8%. There were also declines in electronics, health, general merchandise, and food sales. Clothing rose 0.4%, while sporting goods bounced 2.2%, with non-store retailers up 1.0%.
This article was originally posted on FX Empire
