Gold Price Prediction – Prices Consolidate Following Robust PMI Results
Gold prices moved sideways edging slightly higher closing up approximately 0.25% for the week. This came as the dollar moved lower and Treasury yields took a break from their recent climb. A stronger than expected US Markit PMI index failed to further lift treasury yields. Germany’s manufacturing PMI rose to 58.0 from 56.4, which was better than expected.
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Technical analysis
Gold prices consolidated remaining below resistance near the 10-day moving average at 1,906. Support is seen near the October lows at 1,872. Short-term momentum has whipsawed and turned positive after recently turning negative as the fast stochastic generated a crossover buy signal on the upper end of the neutral range. Medium-term momentum remains neutral to positive as the MACD histogram prints in the black with an upward sloping trajectory that points to a slow trend higher.
US Composite PMI Rises More than expected
The US Flash Composite Output Index rose to 55.5 in October from 54.3 in September, which was a 20-month high. Expectations were for the compositive index to remain at 54.3. The business services index also increased rising to 56 from 54.6 in September which was also a 20-month high. Expectations were for an unchanged reading. The Flash Manufacturing index was slightly higher at 53.3 up from 53.2 in September which was a 21-month high. Expectations were for an unchanged reading at 53.2.
This article was originally posted on FX Empire
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