Gold Price Prediction – Prices Edge Higher on Dollar Weakness – FX Empire

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Gold prices rebounded slightly on Monday. The yellow metal was able to gain traction as the dollar eased. U.S. Yields moved lower following a mixed U.S. ISM manufacturing report. Prices paid soared while futures orders dipped.  An unexpected decline in construction spending also weighed on new construction.

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Technical analysis

Gold prices edged higher and continue to experience a consolidative tone. Prices were able to recapture resistance at the 10-day moving average at which is now support at 1,790. Additional support is seen near the October lows at 1,750. Resistance seen near the October highs at 1,812.  Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is consolidating as the MACD histogram is printing in positive territory with a sliding trajectory which points to consolidation.

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Manufacturing Activity Dropped Less than Expected

U.S. manufacturing activity slowed in October to a 16-month low. The Institute for Supply Management reported on Monday its index of national factory activity slipped to a reading of 60.8 last month from 61.1 in September. Expectations were for the index to fall to 60.5. The ISM survey’s measure of supplier deliveries increased to a reading of 75.6 last month from 73.4 in September.

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