Gold Price Prediction – Prices Rebound but Face Strong Dollar Headwinds
Gold prices moved lower for a 3rd consecutive trading session slipping as the dollar moved higher. US yields moved lower across the interest rate curve, as a risk off mood covered the capital markets. Gold has been unable to gain safe haven status, but gold volatility remains high likely continuing to generate volatile price action. EU and UK PMI readings came in softer than expected.
Trade gold with FXTM
{fx-broker slug=fxtm]
Technical Analysis
Gold prices moved rebounded slightly on Wednesday after breaking down sland declining for the 3-prior consecutive trading days. Resistance is seen near the 50-day moving average at 1,591. Target resistance on the yellow metal is seen near the March highs at 1,700. Support is seen near the 10-day moving average at 1,581. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram also generated a crossover buy signal, but the trajectory is now flattening which reflects consolidation.
PMI Data is softer than Expected
Eurozone final PMI reading fell to 44.5 versus 44.6 expected and 44.8 flash reading. Germany worsened from the flash readings to 45.4, while France improved to 43.2. Spain and Italy both fell sharply from February to 45.7 and 40.3, respectively. UK manufacturing PMI was also reported. It fell slightly to 47.8 versus 47.0 expected and 48.0 flash reading.
This article was originally posted on FX Empire
