Yahoo Finance Gold Price Prediction for February 26, 2018
Gold prices held support levels, despite softer than expected data released out of the Eurozone this week. Eurozone inflation was confirmed at lower levels and Germany provided details of its Q4 expansion which showed that private consumption and capital investment were unchanged.
Technicals
Gold prices where nearly unchanged on Friday holding support near an upward sloping trend line that comes in near 1,325. Resistance on the yellow metal are seen near the 10-day moving average at 1,337. Momentum on the yellow metal is negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices. The relative strength index (RSI) is moving sideways which points to consolidation. The fast stochastic is also printing in the middle of the neutral range which reflects consolidation.
The eurozone confirmed the preliminary January CPI
The eurozone confirmed the preliminary January CPI, which fell 0.9% on the month. The year over year pace of 1.3% represents a decline from 1.4% in December and 1.5% in November. The core rate was confirmed at 1.0% year over year after holding steady at 0.9% throughout Q4. Next week, the preliminary February reading will be released. The headline year over year rate appears poised to slip to 1.3%, while the core may be steady with risk on the upside.
Germany provided details of its Q4 expansion
Germany provided details of its Q4 expansion of 0.6%. Private consumption and capital investment were flat. Government spending increased 0.5% in the final quarter, the same as in Q3. Domestic consumption edged 0.1% higher. The strength of the German economy seemed to be spurred by the 2.7% rise in exports, the strongest showing since mid-2010. Imports rose 2.0%. It is the third quarter in the past five that German imports rose 2% or more. It suggests what private demand there was had been likely met by foreign production.
This article was originally posted on FX Empire
