Gold prices edged lower on Friday following a softer than expected EMU HICP inflation report, which took some of the luster out of the yellow metal. Prices are and are poised to test support near an upward sloping trend line that comes in near 1,233. Resistance on the yellow metal is seen near the 10-day moving average at 1,247. Momentum is neutral as the MACD (moving average convergence divergence) index prints near the zero-index level with a flat trajectory which points to consolidation.
Eurozone HICP Inflation Dipped in June
Eurozone June HICP inflation fell back to 1.3% year over year from 1.4% year over year in the previous month. The number was slightly above expectations of a 1.2% increase. Core inflation rose to 1.1% year over year from 0.9% year over year. The fact remains that the ECB is heading for QE tapering from early next year, even if Draghi remains reluctant to commit to reduced purchase volumes just yet.