Gold Price Prediction for October 16, 2017

Gold prices broke out following softer than expected consumer inflation figures.  U.S. yields eased allowing the dollar to soften paving the way for higher gold prices.  Prices are poised to test resistance near the September 25, highs at 1,316.  Support is seen near the 10-day moving average at 1,282. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. This MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.

U.S. CPI rose 0.5%, with the core rate up 0.1% in September

U.S. CPI rose 0.5%, with the core rate up 0.1% in September. August gains of 0.4% overall and 0.2% on the core were not revised. Compared to last year, the headline number rose to a 2.2% year over year pace, versus 1.9% year over year previously, while the ex-food and energy component was steady at 1.7% year over year. The components showed energy led the uptick, climbing 6.1% after the prior 2.8% gain.