Gold Price Prediction – Prices Edge Higher Despite Robust ISM Data

Gold prices continued to rise on Tuesday as the dollar slid despite a stronger than expected. The US dollar continued its trend lower as US yields headed south. This comes despite stronger than expected manufacturing data that was released on the US on Tuesday. Technical analysis

Gold prices rose on Tuesday but came off the highs of the session. Support is seen near the 10-day moving average at 1,946. Target support is seen near the 50-day moving average at 1,893. Resistance is seen near the August highs at 2,075. Medium-term momentum is decelerating as the MACD histogram is printing in the red with a rising trajectory which points to consolidation. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The relative strength index has also turned higher reflecting decelerating negative momentum.

Manufacturing Rose More than Expected

The manufacturing sector in the US is robust, and the Tuesday report from the Institute of Supply Management showed a stronger than expected number. The August ISM Manufacturing Index came in at 56.0 in August compared to expectations that it would rise to 54.5 from 54.2 in July. New orders, surged to 67.6 in August from 61.5 in July and production rose to 63.3 in August from 62.1 in July. Backlogs also increased to 54.6 from 51.8 in July, while prices paid jumped to 59.5 from 53.2. the August expansion in manufacturing was the 4th consecutive month of expansion in a row. #gold##StockSurge#

Reprinted from FXEmpire，the copyright all reserved by the original author.