Gold price rose on Monday the dollar moved lower. Prices were finally able to capture resistance which now supports near the 10-day moving average at 1,949. Target support is seen near the 50-day moving average at 1,889.
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.
Gold price continued to edge higher on Monday in the wake of the Fed’s new policy which is focused on inflation. The US dollar continued its trend lower as US yields headed south.
New data is expected out next week that include US manufacturing data and at the end of the week, the US jobs report. Chinese August PMI data showed that the recovery in the world’s second-largest economy remains intact.
Chinese PMI Rise
China’s August PMI was unchanged. The manufacturing PMI slipped to 51.0 from 51.0. New orders rose to 52, while the contraction in export orders slowed. The service PMI rose to 55.2 from 54.2. These combined to lift the composite to 54.5 from 54.1.
Read More :
